Jesse Powell comments on Binance’s recent fine:
Co-founder of Kraken praises legal action against Binance
- Jesse Powell, co-founder of Kraken, recently praised the outcome of the investigation into Binance, stating that “the game feels a bit more fair today.” He also emphasized the importance of taking a long-term view in an industry where “every dubious operation represents an opportunity for governments.”
Jesse Powell also took the opportunity to highlight that in recent months, there have been legal investigations into numerous exchanges, including allegations of fund misappropriation and violation of anti-money laundering regulations.
Powell sees these legal actions, especially against Binance and its former CEO Changpeng “CZ” Zhao, as a positive rebalancing rather than a negative event for the industry.
He goes on to say that US cryptocurrency companies such as Kraken, Coinbase, and Ripple are “easy targets for US regulators.”
“Every dubious operation represents an opportunity for governments to scapegoat cryptocurrency and tighten their grip. We obviously can’t rely on quick protection. We have to self-monitor,” Powell said.
Kraken Exchange facing the SEC
Kraken Exchange is itself facing regulatory challenges.
On November 20, the Securities and Exchange Commission (SEC) filed a lawsuit against Kraken, accusing it of mixing customer funds and failing to register as an exchange, broker, dealer, and clearing agency.
Kraken disagrees with the SEC’s complaint and plans to defend itself in court.