Kraken has been warned by the Financial Conduct Authority (FCA) of the United Kingdom over its business dealings in the country. The regulatory agency claims they are unauthorized to operate in the United Kingdom.
Kraken is one of the top exchanges and has been around since 2011. However, the FCA has likened Kraken to “scammers” in its announcement.
In the statement, the FCA gives advice on how consumers can protect themselves against unauthorized firms. It seems to be under the impression that using Kraken is extremely risky, despite it being among the top-rated cryptocurrency exchanges in the entire market.
Given that the exchange has been around for so long, it seems that the FCA sought to do nothing less than de-fame Kraken in the eyes of the public. The announcement makes no mention of why Kraken users are ‘at risk.’
The same regulatory agency recently compromised private information in a critical data leak.
The FCA is known for often butting heads with the cryptocurrency industry. Currently, all crypto-asset companies fall under the UK regulatory body’s jurisdiction. If you’re a cryptocurrency-related business, you likely have a pay a hefty fee to even be authorized by the FCA.
The FCA has also been known for attacking cryptocurrency-backed derivatives markets and has been trying to get them banned entirely since at least 2018. A proposal was formally put forward in late 2019 and is still pending approval.
Although the FCA is not looking to ban cryptocurrencies outright, their efforts are an attempt to block the industry’s popularization. They also are also hoping to extract an exorbitant amount of fees from blockchain-related businesses and exchanges.
The FCA may find Kraken ‘unauthorized’ — but, perhaps, it should be more transparent about its policies and not impede on actors who have been in the space for a long time.