Crypto Exchange Kraken Will Not Comply With New York Inquiry – CEO Jesse Powell

News | April 20, 2018 By:

San Francisco-based cryptocurrency exchange Kraken will not comply with the New York attorney general’s request for information.

Earlier this week, New York Attorney General Eric Schneiderman launched a fact-finding inquiry into the policies and practices of cryptocurrency exchanges. 13 crypto exchanges were asked to fill out a questionnaire sharing details on areas such as ownership, fees, trading suspensions, and money laundering. The AG’s office imposed a May 1 deadline for compliance.

Most exchanges expressed support for the request, stating publicly that they were looking forward to cooperating with the AG’s inquiry and increasing transparency in the crypto space. However, Kraken, which is operating outside the state of New York, did not like the interference of a state authority outside its jurisdiction.

In a Twitter post, Kraken CEO Jesse Powell criticized the attorney general’s request for information, indicating that while the exchange is “happy to help government understand our business,” the most recent request “is not the way to go about it.” He added that the exchange will not provide any information about its business.

“When I saw this 34-point demand, with a deadline two weeks out, I immediately thought, ‘The audacity of these guys — the entitlement, the disrespect for our business, our time!’,” Powell said “The resource diversion for this production is massive. This is going to completely blow up our roadmap. Why don’t you try extracting this information from those businesses actually operating in your state?”

In 2015, Kraken announced that it would leave New York due to the BitLicense, the state’s cryptocurrency regulatory framework. At that time, Kraken called the BitLicense “a creature so foul, so cruel, that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth.”

“Kraken left New York because New York is hostile to crypto, and this ‘questionnaire’ we received today proves that New York is not only hostile to crypto, it is hostile to business,” said Powell.

Amy Spitalnick, a spokeswoman for New York Attorney General’s office, who saw Powell’s remarks, responded to Kraken’s refusal. She said: “Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is basic information that credible platforms should all have on hand.”