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Crypto exchange Kraken under scrutiny for sale of unregistered securities- Bloomberg

Published 02/08/2023, 04:51 PM
Updated 02/08/2023, 04:56 PM
© Reuters. FILE PHOTO: Kraken cryptocurrency exchange logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Cryptocurrency exchange Kraken is under investigation by the U.S. Securities and Exchange Commission for the sale of unregistered securities, according to a Bloomberg report.

The regulator's inquiry is at an advanced stage and could result in a settlement with the San Francisco-based platform in the coming days, the report added.

Kraken declined to comment on the report. The SEC did not immediately respond to a request for comment.

SEC Chair Gary Gensler has previously said that companies that help facilitate transactions in the crypto market should register with the agency just like other market intermediaries.

© Reuters. FILE PHOTO: Kraken cryptocurrency exchange logo is seen in this illustration taken July 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Kraken's incoming chief executive officer told Reuters in September that the exchange had no plans to register with the SEC as a market intermediary, or to delist crypto tokens that the regulator has labeled as securities.

In November, Kraken agreed to pay $362,000 to the U.S. Treasury Department's Office of Foreign Assets Control to settle civil liability related to apparent violations of sanctions on Iran, and to invest an additional $100,000 in certain sanctions compliance controls.

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