Cryptocurrency exchange Kraken is planning to register in the Commission on securities and exchange Commission (SEC) as a broker-dealer and alternative trading system (ATS), President and co-founder Jesse Powell (Jesse Powell)
«Probably we’re going to register as a broker-dealer, and then ATS, — shared his plans the head of the exchange — I don’t think it will help business. But I think that we are on the right track».
Currently Kraken and most other American cryptocurrency exchanges operate as companies providing money transfer services, and are regulated at the state level.
Earlier this year the SEC issued a Bulletin requiring the exchange of crypto-currencies not included in the lists of tokens of the action, not registering as stock exchanges. To platforms, including listings of unregistered securities, the Commission threatened to take strict measures.
Registration as ATS — a trading platform which regulation differs from the regulation of public exchanges – provides the SEC more authority in oversight over the platforms. It can also reduce the desire of the SEC to apply sanctions to the sec, including lists of unregistered tokens.
The SEC hopes that cryptocurrency exchanges will be registered by the Commission independently. However, registration as an ATS – the process is time consuming. According to Powell, they can pass it, but only if, the Commission will provide more clarity about the regulatory status of cryptocurrencies and token-ICO.
In any case, it’s a start, and this is partly due to the attitude of Powell to the regulation, which he considers hostile to the industry.
We will remind, recently the former attorney General of new York Eric Schneiderman (Eric Schneiderman) has sent 13 American cryptocurrency exchange the letter with the requirement to disclose information concerning their activities. The list includes platforms which are the same as Kraken in the state are not functioning. Many exchanges willingly have provided all the necessary information, however, Powell called their behavior «ingratiation» and said that the Kraken will not respond to the request.
Shortly thereafter, Schneiderman was forced to shamefully resign after four women accused him of harassment. This caused rejoicing Powell, who compared the requirement Schneiderman with physical violence over the exchanges.
«The Prosecutor General’s office has authority over us, said Powell, there are two things that I can’t stand, it’s the tyrants and hypocrites, and this guy embodies both».
According to Powell, in the future, he plans to make a public stock exchange Kraken and tokenservice shares of the company.