Sirwin
Sirwin

Kraken: Canceled affiliations in Italy and new KYC request

By KMatt | Blogging Crypto | 2 Apr 2024


Kraken is one of the most well-known cryptocurrency exchanges in the world, with over 6 million users in 190 countries, founded in 2011 and with a wide range of services, from trading, to staking, futures, OTC and others.
Formula 1 fans will surely have noticed the partnership with Team William Racing.

On March 31, Kraken announced two decisions that had a disruptive effect on the Italian cryptocurrency market:

1. Cancellation of the affiliate program

Kraken's affiliate program allowed users to earn commissions for every user who signed up through their referral link.

2. KYC required again

Kraken has communicated to several Italian users the need to proceed with an update of the KYC documents. It appears automatically when you log in and will start from April 6, 2024.

Reasons

The basis of these two decisions, although there are no official declarations yet, may be multiple:

- Greater compliance with anti-money laundering regulations (+ MiCA coming in December): the new KYC requests could be a way for the platform to strengthen its compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, in particular in view of the entry into force of the new European AML/CFT Directive.

- Cost reduction

- Strategic reorganization: The two decisions could be part of a broader strategic reorganization of Kraken, which could include withdrawing from some markets or launching new products and services.

The impact is limited and not very harmful, although it cannot be described as pleasant.
A similar situation can also be expected from other exchanges considering the MiCA coming in December 2024 and the pressures related to AML/CFT regulations.

 

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KMatt
KMatt

Welcome to my blog <3 I love playing videogames, interested in crypto, support #lgbtqi+ and human rights


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