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Cryptocurrency Exchange Kraken will not comply with New York inquiry

Kraken co-founder and CEO Jesse Powell has said the Kraken cryptocurrency exchange will not comply with inquiry and information requested by the New York attorney general. He said on Twitter that the “resource diversion” for the production of the information requested is massive and that will “completely blow up” their roadmap.

No Answer to NewYork AG’s Enquiry

Kraken, the 12th largest crypto exchange by overall trading volume over the last 24 hours is not answering to NewYork AG’s enquiry. While other cryptocurrency exchanges comply with the information requested by the New York attorney general’s official, Jesse Powell says, he won’t follow suit. 

“Then I realized we made the wise decision to get the hell out of New York three years ago. And that we can dodge this bullet,” Powell said. “Ordinarily, we’re happy to help government understand our business, however, this is not the way to go about it.”

He added that the “placative kowtowing toward this kind of abuse” was sending the message that it is OK” but it is not, and it was instead “insulting.” This points to the possible mistreatment with requests of information from authorities. He said the reason the exchange left New York was that the state was hostile to cryptocurrency. Adding that the last time exchanges complied with New York’s request for information, they were encumbered with the BitLicense.  

Hostile or not hostile?

He said the questionnaire proved that New York was not only hostile to cryptocurrencies but also “hostile to business.” In addition, he pointed that if the attorney general wanted to talk, “ask us for a phone call, fly yourself out to San Francisco, invite us for lunch at your office. We can tell you which industry groups to join and where to begin your research.”

The office of the attorney general asked 13 crypto exchanges to complete a questionnaire by May 1.  Additionally, it asks for detailing ownership, fees, trading suspensions and money laundering. CNBC reported that Coinbase, the Gemini Trust and bitFlyer USA are positive on the request.    

Unlike Coinbase, Ripple, Circle and bitFlyer USA which have a BitLicense required to operate in the state, Kraken does not have the license. ItBit and the Winklevoss twins’ Gemini Trust have charters from the financial services department to operate in the state.

What do you think of the New York’s position on cryptocurrencies? Hostile or not hostile?

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David

David Kariuki is a journalist who has a wide range of experience reporting about modern technology solutions including cryptocurrencies. A graduate of Kenya's Moi University, he also writes for Hypergrid Business, Cryptomorrow, and Cleanleap, and has previously worked for Resources Quarterly and Construction Review magazines.

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