Just days after reports that the Securities and Exchange Commission (SEC) was launching a probe into Coinbase, Kraken has become the latest exchange to come under the judiciary radar after it was accused of violating U.S. sanctions for three years.
Kraken Faces U.S. Sanctions
One of the world’s largest crypto exchanges, Kraken, is reportedly being investigated by the U.S. Treasury Department on suspicion that it allowed Iranian users to utilize the site’s services in violation of federal sanctions.
Sponsored
According to reports, the U.S. Treasury Department’s Office of Foreign Assets Control has been investigating the crypto exchange since 2019 to determine whether it allowed users in Iran to buy and sell digital tokens.
Possible Fines for Violating the Sanctions
If Kraken is found guilty, the exchange will be expected to pay a fine. The case makes Kraken the biggest U.S. crypto company to suffer enforcement action from the Treasury regarding the violation of sanctions imposed upon Iran in 1979.
However, Kraken is no stranger to regulatory sanctions. In 2021, the Commodity Futures Trading Commission (CFTC) slapped the exchange with a $1.25 million fine for operating a prohibited trading service.
On the Flipside
- In the Middle East, Rakbank, a bank in the United Arab Emirates managing $14 billion in assets, has partnered with Kraken to launch ‘Dirhams’ crypto trading.
Why You Should Care
The increase in regulatory scrutiny targeting the crypto space is in response to the dynamic growth of the industry that has seen it become more established and entwined with other industries.
Read about Coinbase‘s U.S. probe:
Coinbase Probed by the SEC over Unregistered Security Trading Allegations
Binance was also accused of bypassing the same sanctions. Find out more below:
Investigation Shows Binance Bypassed U.S. Sanctions and Served Crypto Traders in Iran