Kraken which is one of the top cryptocurrency exchanges has been working in UK since 2011. However, recently, the FCA has challenged its authorization by announcing it as “scammers”.
In a statement, the FCA has asked the consumers to protect themselves from using unauthorized firms. The authority has tried to cast a poor image about Kraken by declaring that business relations with Kraken are highly risky. Actually, the authority seems to be totally ignorant of the fact that Kraken is one of the top-rated cryptocurrency exchanges in the entire market.
FCA Is Making Baseless Charges On Kraken
Many critics think that this is nothing but an attempt on the part of FCA to baselessly defame Kraken in the eyes of the public as the authority has not been able to provide any sound proof of why the users are at risk.
Moreover, the FCA has also been notorious in dealing with the cryptocurrency industry. It exercises sole jurisdiction over crypto-assets. Mostly, cryptocurrency-related businesses face a complicated compliance issue as they have to pay a hefty fee to even be authorized by the FCA.
Not only this, the FCA also keeps cryptocurrency-backed derivatives markets in a tough situation and has been trying to get them banned entirely since at least 2018. A case is in front of us as a proposal submitted by a cryptocurrency business in late 2019 is still pending approval. Although the FCA is unlikely to ban cryptocurrencies outrightly, it is trying to block the industry’s popularization. They are trying to extract a hefty amount of fee from blockchain-related businesses and exchanges.
In summary, The FCA may find Kraken ‘unauthorized’ but it should maintain more transparency in its policies and try to not impede the business of those actors who work for a long time for the benefit of the public in this world engineered by cryptocurrency.