UPDATED:

Here is the full comment from Kraken CEO, Jesse Powell he put out as a comment on Coindesk article:

The AG’s tone-deaf response shows just how bad the disconnect really is. Not only are they apparently experts in what legitimate businesses desire, they are also experts in what’s important to consumers. I have a wild idea: how about we let the market decide? Having the kind of requested information “on-hand” is not the same as having the resources to compile it neatly to fit the framework of the request, within 2 weeks. By the way, what ever happened to auditing the Fed? For the record, my complete quote was:

“Kraken’s BitLicense-prompted exit from New York in 2015 pays another dividend today. When I saw this 34-point demand, with a deadline 2 weeks out, I immediately thought “The audacity of these guys — the entitlement, the disrespect for our business, our time! The resource diversion for this production is massive. This is going to completely blow up our roadmap!” Then I realized that we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet. Ordinarily, we’re happy to help government understand our business, however, this is not the way to go about it. If you want to talk to us, ask us for a phone call, fly yourself out to San Francisco, invite us for lunch at your office. We can tell you which industry groups to join and where to begin your research. But when is it going to be enough for New York? We did all this once already, and then you gave us the BitLicense. Why don’t you try extracting this information from those businesses actually operating in your state? 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.”

Good luck, New Yorkers.”


One of the largest cryptocurrency exchanges based in San-Francisco, Kraken isn’t planning to respond to the New York Attorney General’s newly-unveiled inquiry into the ecosystem.

New York’s AG has launched an initial probe into 13 cryptocurrency exchanges, one of them being the Kraken exchange. Coinbase, the U.S.’s biggest cryptocurrency exchange, was also included.

“Kraken’s BitLicense-prompted exit from New York in 2015 pays another dividend today,” CEO Jesse Powell said via email early Wednesday morning.

Powell made it clear that Kraken does not intend to answer the questionnaire, saying:

“I realized that we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet.”

In March this year, the U.S. Securities and Exchange Commission (SEC) said it would force such exchanges to register with the agency or face legal action and fines. Bitcoin, and other cryptocurrencies, remain both unpredictable and volatile. Exchange hacks have resulted in the loss of hundreds of millions of dollars.

Kraken has left New York back in 2015 as they didn’t apply for BitLicense.

The BitLicense is New York’s regulatory badge of approval, required of all digital-currency businesses that are deemed “money transmitters” (companies that hold customer funds, most of them exchanges).

Kraken, an exchange headquartered in San Francisco, said back then that the license, “comes at a price that exceeds the market opportunity of servicing New York residents. Therefore, we have no option but to withdraw our service from the state.”

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here