According to the latest news, Kraken has reached a settlement with the Securities and Exchange Commission (SEC), requiring the company to end projects related to betting on digital currencies. The SEC committee meeting, which will be closed on Thursday afternoon, will discuss the settlement strategy and then make a decision, with the possibility of announcing the settlement plan later in the day.

Kraken sunset data encryption pile

Under the evil forces of gambling, Kraken logged on to the password trading center to provide customers with a variety of services, one of which was a 24% return on password-borrowed goods; this is likely to end in a tragic settlement. According to Kraken's betting service platform, the company offers a 20 per cent annual return (APY) and ensures that customers receive bets paid twice a week.

It is reported that the current chairman of SEC once said:

The Kraken betting program is used to provide and sell securities. Share-as-a-service regulators must apply for registration and provide comprehensive, fair and truthful disclosure and investor protection.

Kraken said in an official reply that from today, the trading center "will automatically eliminate all US customer equity shares that apply to be registered in the chain betting plan." However, the company confirmed that it would continue to provide betting services based on another branch belonging to non-US customers. Kraken is also accused of paying 30 million dollars in refunds, forecasting interest and civil penalties. According to an earlier report on CoinGape, Kraken was close to settling with SEC on Wednesday by selling unregistered securities.

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Just a day after CoinbaseCEO Bobby Armstrong indicated that he had received rumors that SEC might strictly prohibit retail customers from using betting functions, CoinbaseCEO Bobby Armstrong indicated that SEC might strictly prohibit retail customers from using betting functions, including providing login passwords as collateral for block chains such as etai Fong. However, SEC will not choose to take action, but will respond to Armstrong's remarks on Wednesday night by taking action. This has cast a shadow over Coinbase's unique betting service and other trading centers operating in the United States.

SEC strengthens the punishment for data encryption

Gamo Gensler, the current chairman of SEC, has said in the past that, in his view, bets may still need to be regulated by Howey tests, even if they are spread by licensed agents such as Coinbase or Kraken. Howey testing can be traced back to decades ago and is generally used to determine whether dynamic passwords belong to securities evaluation indicators according to Chinese law.

At the time, Gensler showed that betting seemed to be synonymous with lending. In the past, SEC has explicitly filed a complaint with the credit company and reached a settlement with the credit company, such as BlockFi, the loan company that has suspended business.

In addition to the ongoing research conducted by SEC, Kraken recently suspended its project in Abu Dhabi, although it got a local license plate there a year ago. Earlier, the company suspended its business process in Japan because of falling digital currency requirements and the busy regulatory environment in the host country.

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