Kraken is dedicated to making sure that we adjust to relevant legal guidelines and rules. Our dedication to compliance, and evolving to maintain up with regulatory change, positions us to advance our mission of accelerating world crypto adoption to advertise monetary freedom.
Proactive regulatory adaptation
Kraken has been proactive in adapting to regulatory adjustments. As an illustration, in 2013, when the U.S. FinCEN launched new pointers, we delayed our launch to make sure full compliance. This choice underscored our understanding that regulatory adherence is significant for our platform’s longevity.
Investing, upgrading and automating core elements of our threat primarily based program – comparable to BSA/AML, sanctions, governance, transaction monitoring, high quality assurance and coaching packages – has been integral to our world compliance method.
In 2023, we testified earlier than Congress to explain our threat administration, safety and consumer safety requirements. We additionally highlighted potential enhancements inside U.S. crypto rulemaking for Congress, citing legislative and regulatory developments in different developed economies.
Crypto markets transcend borders in methods conventional monetary markets don’t. Digital belongings empower individuals with new methods to transact in a borderless, real-time and truthful method. We’ll proceed to lend our collaborative voice to the continued dialogue round efficient regulation.
Clear regulatory frameworks will go a good distance towards stopping illicit actions, thereby safeguarding the integrity of the crypto market. As a part of our dedication, we’re implementing world requirements comparable to MiCAR (Markets in Crypto Asset Regulation).
Constructing belief and transparency
We mix a dedication to following the principles with a deep rooted respect for the belief shoppers place in us. This implies complying with rules and legal guidelines relevant to our enterprise, whereas actively defending consumer privateness and sustaining the best safety requirements.
We additionally proceed to foyer for and help candidates who advance legal guidelines and rules acceptable to the crypto trade whereas difficult proposals which we don’t consider make sense.
We prioritize transparency in our compliance processes. For example of our dedication, we often work with legislation enforcement and regulatory businesses world wide. We supplied 2,510 information packages to world legislation enforcement and regulatory businesses in response to lawful requests for Kraken consumer information in 2023, demonstrating our dedication to cooperating with legislation enforcement to advance world crypto adoption.
We do that in keeping with strict insurance policies and procedures designed to guard consumer privateness to the utmost extent allowed by legislation. You’ll be able to overview which businesses requested information final 12 months in our 2023 Kraken Transparency Report.
Core world compliance practices
Kraken’s crypto compliance program is designed to detect, mitigate and forestall monetary crime, market abuse, information privateness breaches and fraud whereas defending its shoppers and, extra broadly, the crypto markets.
Our greatest in school Compliance group applies information pushed, threat primarily based options leveraging automated “regtech” to our insurance policies, procedures and controls. Our Board of Administrators and government administration set a “tone from the highest” and oversee our program.
Our program consists of core pillars:
- We rigorously adhere to all legal guidelines and rules: This contains AML, sanctions, terrorist financing, markets regulatory, information privateness and shopper safety guidelines in geographies the place we function to guard our shoppers and to stop malicious actors from exploiting our platform. This contains KYC (know your buyer) and EDD/CDD (enhanced due diligence/buyer due diligence) necessities.
- Securing licenses and registrations: We keep required licenses and work actively with regulators to stay in good standing, underscoring our dedication to lawful operations.
- Sturdy controls and information pushed reporting: We repeatedly strengthen our threat primarily based controls whereas measuring and monitoring their effectiveness by way of actual time dashboard reporting.
- Governance and impartial testing: Our governance and controls are topic to threat assessments in addition to examined by impartial third events, along with inside high quality assurance oversight.
- Funding in compliance experience: Our world compliance group contains specialists from regulatory our bodies, legislation enforcement and the non-public sector, guaranteeing sturdy and complete practices which bear ongoing coaching.
Constructing a dynamic compliance perform match for the longer term
Evolving regulatory regimes world wide additional punctuate the significance of compliance and its rising position throughout the crypto trade. New guidelines imply extra required registrations, reporting and disclosures.
Given this backdrop, we’re dedicated to constructing a forward-focused compliance perform that:
- Protects our shoppers: Our program places our shoppers first, defending their safety and privateness. We provide them best-in-class services and products whereas complying with relevant legislation.
- Anticipates and addresses regulatory adjustments: We’re dedicated to evolving our compliance methods to fulfill present and rising rules.
- Collaborates with legislation enforcement: We work intently with authorities in any respect ranges to stop platform misuse and defend crypto traders.
- Engages with trade and policymakers: We intention to form crypto constructive insurance policies that help the expansion and innovation of the crypto trade, with out imposing undue burden on shoppers or the sector.
We designed our compliance program to flexibly adapt to dynamically altering world crypto rules. We proceed to scan the horizon to remain forward of regulatory adjustments, sustaining a protected and dependable platform that upholds the rules of economic freedom.
