Topic: Is Kraken government-backed in the US? (Read 1666 times)

check count 1.  : Operation of an unlicensed Money Service.
allegation number 6 is referring to the fact that BTC-e had no AML process in place. it's something extra

Allegation 6 talks about being licensed, it also talks about AML. Kraken has KYC rules, but how can any exchange have effective measures against money laundering ? It's impossible. Banks' answer is simply to allow authorities to get their data, freeze accounts etc., do "licensed" exchanges do this, and who's to say that would really satisfy authorities hell bent on killing cryptocurrencies ?

Nobody is safe.

https://www.justice.gov/usao-ndca/press-release/file/984661/download
Check allegation number 6.

I'm sorry but with that kind of thinking, forget cryptocurrencies. States don't have any interest in promoting cyrptocurrencies, lest of which the United States which derives most of its global power from printing its own globally accepted currency. The more cryptos are a threat to that, the more they will crackdown on it.

If I had serious crypto money, the US is the last country on Earth I would live in !

The thing about Kraken in particular though is that the founder is already mega-wealthy, it's not in his best interests for it to go down in unpleasant manner because of assassination risks. Everyone knows who Jesse Powell is. If he has enough of it, he will need to wind it down slowly.

yes, i warned for SO many times about these exchangers, including BTC-e.   

now, it's becoming reality

the next ones will be Poloniex, Bitfinex, Kraken.

If you are not using a legal, registered business then you are handing your money over to criminals plane and simple. If you think that's a good financial decision... then best of luck. The moment they get into any kind of trouble they are going to disappear with your btc. You will have no legal recourse, no legal standing; you may even be considered an accessory to their crimes. At that point you will have more than your financial loss to worry about.


EDIT: well, surprise surprise.
https://bitcointalk.org/index.php?topic=2047405.0;topicseen

Can you provide a legal information about this?

Btw:

being registered as MSB = financial license

So, you can be MSB without a license in some states, huh?

Kraken provides the types of services which require to be MSB and FINCEN registration (but only in this order)

Coinbase is registered as MSB in almost all the states and this gives them the right to do many other operations not only dealing with virtual currencies. Except NY, no other state have a special license for Bitcoin (Coinbase have that special license too).

crypto-related operations= virtual currency. MSB law is referring to the virtual currency not to cryptoshit or any other name.

Each money services business (MSB) must register with the Department of the Treasury (FINCEN).  Note that failure to register when required to do so or obtain necessary state licensed, can lead to jail time

Most states require money services businesses operating within their territory to be licensed with the state banking department.  Note that many states also require registration of foreign MSBs that transact with their residents.  For example, money transmitters with no physical presence in Texas that transact with residents of Texas must be licensed in the State of Texas; same with all the other states.

FiNCEN describes very well the exchangers status for so called decentralized virtual currencies.

" a person is an exchanger and a money transmitter if the person accepts such de-centralized convertible virtual currency from one person and transmits it to another person as part of the acceptance and transfer of currency, funds, or other value that substitutes for currency."

https://www.fincen.gov/resources/statutes-regulations/guidance/application-fincens-regulations-persons-administering

So, the point that many people are sustaining (without knowledge about the law) that Kraken is registered with FINCEN and it's enough, it's sci-fi, bullshit, etc  

 of course, there are many other exchangers like Kraken.  

In my opinion - you got it backward.
You become MSB just by providing some types of services. Indeed, in some states you should apply for a license (but it depends on type of operations - if you check coinbase licenses - none of them were issued to conduct crypto-related operations)
So if you provide certain services - you should register with FinCen. Check out bitstamp - they are licensed in EU, registered in FinCen, but I could not find any state licenses.

I keep saying that by registering with FINCEN, it does NOT mean that a company is a MSB.

"Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB. Information provided on this site reflects only what was provided directly to FinCEN."

You can register on FINCEN website yourself... right now with any name you want.  make a try.


So, being registered with FINCEN means nothing. First a company MUST be a MSB and then to submit on Fincen.

A US company must be registered as MSB in all the states if they want to deal in all of them. See Coinbase, Gemini, Itbit, Circle. Look to their websites. You will notice something like :

https://www.coinbase.com/legal/licenses

https://gemini.com/about/


See? BIG difference between Kraken and these ones

Again, being registered on FINCEN page without being MSB = zero (outlaw, illegal)

Please show me on Kraken website(or ask them via email, phone) where they are registered as MSB

Oh really?
Put in kraken into DBA name and see what is going to show up
https://www.fincen.gov/msb-registrant-search

it's a fake information. Kraken is not registered as MSB in any state.

Just email them directly, don't take my word for it. I'm guessing all states

could you please share with us where they are registered as MSB? what state(s)?

Ok, I got the actual deal from Kraken (you can email them).

They ARE a registered MSB.

However they AREN'T insured, either for fiat or BTC.

I understand that insurance for BTC might not be easy, but it's seriously lame that there's no insurance for USD stored - it can't be that hard. Anyone who is thinking about opening up a competing exchange in the US, you should do it because that is a dealbreaker (and insure for USD obviously).

'
it's not about hate for Kraken 

Poloniex is in the same position.

it's all about being fair. few companies invested A LOT to comply with the law, being MSB(financial licensed) and others are running illegal businesses. That's why BTC has a bad reputation everywhere and that's why the banks are closing the users accounts. 

a regulated market (by having regulated exchangers) will bring a lot of investors.

Lol and you have absolutely no agenda here right? You sure seem to hate Kraken for some reason. What could it be? Would you care to enlighten us?