Regulation is a very dicey subject in the world of cryptocurrency. On paper, regulating this industry makes no sense and serves no real purpose. Applying guidelines to a decentralized ecosystem is not all that easy. Kraken has taken an interesting stance on regulation, although it a positive note.
Unlike what people may assume, Kraken is not inclined to either work with or oppose any government. The company will respond to individual queries as they see fit. With the recent NYAG questionnaire, the company has taken an interesting position. They acknowledge there are a lot of issues with this request.
A Difficult Position for Kraken
Not only does it have an unattainable deadline, it also came out of the blue. Prior to this questionnaire, there was no communication by the NYAG or any other regulatory body. Kraken also considers itself to be well outside the jurisdiction of this questionnaire. Even so, the company was clearly named in this ongoing investigation.
Kraken explains the questionnaire’s point as follows:
“Do we have answers to all the questions? Yes. Is the NYAG the world’s leading authority on what traders want from crypto exchanges? No. Is it the NYAG’s responsibility to ensure that global crypto exchanges have answered all these questions? No. Do traders actually care about answers to most of these questions? No.”
It is evident Kraken is not all too amused by this publicity stunt whatsoever. There are a lot of reasons why such a development will hurt the cryptocurrency industry first and foremost. At the same time, regulators have a tendency to overstep their boundaries in this industry. How all of this will play out, is anybody’s guess.
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