By Max S - Cryptocurrency Enthusiast - 29-09-2021
The world of buying and selling Bitcoin (BTC) and altcoins has major ups as it does downs. Crypto technology becomes more advanced on a daily basis and is reshaping the digital world. Despite the high efforts of the cryptocurrency trading industry, there are a lot of incidents that do not highlight its good side.
Reportedly, one of the most trusted Bitcoin exchanges in the US has been caught illegally trading to customers. A popular cryptocurrency exchange platform, Kraken, had recently been fined over $1 million by the US government. The United States Commodity Future Trading Commission (CFTC) has recently sanctioned the crypto broker platform. Despite the fact that the Kraken Exchange is one of the most significant crypto exchanges worldwide, it was still operating illegally within US borders. According to sources, the exchange must pay the CFTC a settlement fee of $1.25 million.
According to the CFTC, the exchange failed to register to trade crypto legally within the United States. Further stating that Kraken did not follow the Commodities Exchange Act rules, this applies to providing margin crypto products in June 2020. When the news was made public, in the official release, it stated that Kraken did not sign up to be a Future Commodity Merchant (FCM) or a Designated Contract Market (DCM). The two vital certifications should have been completed and registered prior to offering margined crypto transaction services.