The Crypto markets were shocked once again with the Probe against Kraken Fx, the US based popular crypto exchange is being probed by the Securities and Exchange Commission (SEC) and agreed to settle $ 30 million to SEC charges.
The probe was initiated against Kraken Exchange over the allegation on the unregistered securities that it offered to the customers.
It is said that Kraken has violated the rules and regulations in the US with the regulator and the staking of securities is illegal. As a result Kraken was said to be closed its operations of staking.
Given this news around Kraken’s market position, any action against the platform can entice massive ramifications and wide bounded effects in the Crypto markets. Finalizing the settlement with the SEC which is said to be at $ 30 million, would also add the enormous pressure on other firms to deal with the regulator. This would also end up with various associated risks in the crypto markets as well.
Kraken is a United States–based cryptocurrency exchange and bank, founded in 2011. It was one of the first bitcoin exchanges to be listed on Bloomberg Terminal and is reportedly valued at US$10.8 billion, as of mid-summer 2022.
This created again a shock in the Crypto market. The rival of Kraken, Coinbase Global Inc share fell over 14% in the US stock market- Nastaq. However, the Coinbase's Chief Legal Officer said the company’s on-chain staking services are fundamentally different from that of Kraken and the exchange's current staking program is not affected by the Kraken news.
Kraken offers lower fees for pro traders but has some geographic restrictions within the U.S. Whereas, the Coinbase's platform is easiest to use for new investors, but trading fees are generally higher.
We could see a wider fall in the crypto market while the entire crypto marketcap fell by 3.39% from yesterday at stands at USD 1.02 T.
As in the new year in 2023, we have witnessed that the crypto markets were started to move high. This news have come as a major shocking for the Crypto world this year and there are witnesses in the crypto markets with the sudden steep fall again.
BTC broke below $ 22000 and currently trades at 21850 $.
The major coins are also trading low. But as an interesting thing, Ethererum still trades at this support level around $ 1600 and currently it trades at 1544 USD.
Let's wait how this Kraken's news widen the things in the Crypto market in the coming days!