According to reports, the Securities and Exchange Commission (SEC) has been investigating access to the password exchange Kraken in the country is likely to violate the behavior of individuals who give unregistered securities. However, it is still not clear what login passwords and dynamic passwords and products have been verified by financial regulators.

Kraken in SEC scanner

It is reported that the investigation into Kraken is in its final stages and, as mentioned in the latest figures, may reach a settlement in the next few days. The bankruptcy of FTX at the end of last year made the field strictly inspected in the United States, which will have a significant adverse impact on all actions taken by Kraken.

A settlement with SEC could put pressure on other cryptocurrency companies to negotiate distribution with regulators. At one point, regulators indicated that most of the tokens being traded were securities that should be regulated by the agency's standards. Investigations conducted by SEC may not necessarily result in enforcement actions, but they may result in fines and other adverse effects on companies and individuals.

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Kraken, the company's San Francisco-based cryptocurrency exchange, has a global turnover of more than $650 million a day, making it the third largest exchange in the world, according to market data. The company claims that it applies more than 185 different cryptocurrencies on the platform, but it is not clear how many of them actually need to be bought and sold by users in the United States.

An earlier competition with the government

At the end of 2017, Kraken reached a settlement with the offices of other national property manipulation companies of the U.S. Treasury Department that generally violated U. S. sanctions against Iran. The settlement has nothing to do with the initial complaint. As part of the contract, the company promised to pay just over $360000 and invest $100000 to comply with the ban. OFAC reported at the time that Kraken wanted to report the suspected violations to the government and assist in the investigation.

In addition, the SEC has investigated Coinbase Global Inc., one of Kraken's competitors. The sale of tokens has been reported by CoinGape before. In a civil indictment against an insider trading case involving a former Coinbase employee and two men, the agency did determine that some of the tokens offered by the exchange were securities, but did not explicitly accuse Coinbase of granting unregistered securities.

The Kraken Exchange appears to be in a state of uncertainty and, like the ongoing investigation by SEC, recently shut down its project in Abu Dhabi, with local license plates less than a year apart. Earlier, the company suspended business processes in Japan, presumably because of a weaker need for cryptocurrencies and an increasingly stringent regulatory environment in the country.