On 22nd April, Jesse Powell, the CEO of Karken has given a clear explanation of the firm’s position on the Regulation by NYAG. Jesse began his open letter by mentioning that his recent tweet about New York Attorney General [NYAG]’s questionnaire should not be considered as a disagreement with the government.
Issues which he mentioned are:
- The deadline of 2 weeks is unreasonable.
- Most of the information was already provided to New York Department of Financial Services [NYDFS] and FinCEN earlier.
- Due to some competitive reasons, the team has decided to keep most of the trade secret confidential.
- Though Karken does not have any New York clients, AG has demanded the information without offering any compensation for the professional consulting work.
Jesse says that Karken is ready for a voluntary engagement with NYAG and NYDFS on a strategy for replacing the BitLicense with something rational.
“we would expect NY to be respectful of our time, to do its own research and come to the discussion prepared. We would do this for free, as a gift to the people of New York.”
Further, Jesse mentioned that traders do not care about most of the questions asked by NYAG. What really matters to a trader is :
- Token selection
- Fast trade execution
- User Interface
- 24/7/365 continuous markets
- Security (until it fails, then they realize it’s #1)
- Privacy, minimal document requirement for onboarding
- Customer Service
According to him, ‘cryptocurrency traders are not interested in licenses and regulatory approval, being protected from market manipulation, being protected from making risky investments’, Conforming to Wall St.’s image of what cryptocurrency markets should be.
Van Flymen, a Software Engineer from New York says:
“Couldn’t agree more with you @jespow”
Cary M Warren, a Twitterati commented:
“Error on the side of caution or protecting the establishment? You know you have a financial changing technology that threatens the past. Keep hitting the ball into their court and keep up the pressure. It will not be easy”
Veronika Verochka, a Cryptocurrency enthusiast commented on Jesse Powell’s Twitter post:
“You made a wise decision.”
Another Technology enthusiast commented:
“To be fair though Jesse @jespow I had my doubts when I tested your exchange. Something fishy. I don’t think regulators are generally hostile to crypto. Often, bad actors use that as an excuse to hide their own misdealings. Crypto succeeds on its own merits. Do no harm Bud.”
Jesse later explained the reason behind Karken’s departure from Japan. Also, he mentioned a few measures that must be taken to increase consumer protection and explained how the crime reduction can be done on cryptocurrency exchanges.
He concluded the letter by saying:
“We encourage regulators to resist the temptation to just swing at whatever’s within arm’s reach. Think about your long-term strategy. If you make life too difficult for your neighbors, they might move away. And then you will be attempting to protect your consumers from the guys across the ocean, who couldn’t care less about your strong right hook. Kraken is always willing to work with regulators and law enforcement.”
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