As we all know the US has tightened its crypto regulations and the crypto related activities after the downfall of the crypto exchanges and the hack attacks made throughout the past.
Now there is no single regulatory body for crypto activities.
Kraken is one of the leading crypto exchange companies in the world which is expected to abide all the cycling rules and regulations.
The company wrote in a blog post that “we ask that our employees respect the individual rights, privacy, and freedoms of others. Crypto is a freedom movement and Kraken will remain a freedom company.
HERE’S THE ISSUE
Staking was the main issue….In a video message posted to Twitter on Thursday, SEC chair Gary Gensler said that most staking providers fail to provide customers proper disclosures such as how a company is protecting a user’s staked assets. Those providers should register their staking services with the SEC, Gensler added.
Unfortunately this was a rule which was mutated and Kraken was not aware of this .
As a result Kraken has agreed to close its staking services in the US and pay $30 million in penalties to settle U.S. Securities and Exchange Commission charges that it failed to register the program
Now this move is expected to cause a lot of confusion among the exchanges which have the same kind of offerings.
DILEMMA OF THE US CRYPTO INVESTORS AND LEADERS…
Now the government of the US is blamed by the crypto leader and the members of the crypto market for being so sensitive to all the minute things by which a crypto exchange would not affect the environment or the economy.
These sudden changes will create a negative impact and a fear of losing assets among the people making them withdraw all their investment.
This leads to the loss of the market and the value of the currencies go completely down adversely affecting the workers involved in this industry.
The SEC has cracked down on crypto exchanges recently : In January, it hit Genesis and Gemini with charges for offering unregistered securities.
The SEC shouts out the need for the securities to be registered with them so that a validation of abiding the laws is shown with this.
CAN THE CRYPTO WORLD UPDATE ITSELF CONTINUOUSLY LIKE THIS?
The answer is NO , because such manipulating rules and regulations can make the work hectic for the exchange and other CRYPTO related services stagnant without any movement.
So standard regulations are required to keep the crypto currencies to work on with and abide with.
