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Kraken to Enforce new Rules Affecting U.S Clients From June 23rd

Governments across the world are stepping in when it comes to crypto regulations. South Korea has been one of the more notable cases in its move to step up KYC and crypto exchange transparency. The latest government to join the fray is the United States, and crypto exchanges are taking note.

In line with U.S government demands for more transparency, the Kraken crypto exchange has announced that it would discontinue margin trading for Americans with only tier one identity verification.

In its blog, the exchange stated that the new rules would take effect on June 23rd. All Americans who do not have intermediate-level verification will have some room to cut down on their margin accounts. However, this will only go on for 28-days. After then, those who still have margin trades open on the platform will be closed out.

The new rules do not affect international customers or Americans whose accounts have an intermediate level verification. Exchanges like Kraken are taking these measures after the CFTC and other U.S authorities started pursuing exchanges for KYC-related issues. One of the exchanges that are already on the spot for violation of KYC regulations is Bitmex.

The key figures behind Bitmex are facing lawsuits in the U.S for various regulations violations. U.S authorities have stated that through proper KYC, criminality that involves crypto exchanges can be dealt with conclusively.

Across the border in Canada, authorities are taking equally stringent measures. Poloniex crypto exchange recently came under the spotlight of the Ontario Securities Commission for regulations violations.

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