Kraken is dedicated to making sure that we adjust to relevant legal guidelines and laws. Our dedication to compliance, and evolving to maintain up with regulatory change, positions us to advance our mission of accelerating international crypto adoption to advertise monetary freedom.
Proactive regulatory adaptation
Kraken has been proactive in adapting to regulatory adjustments. For example, in 2013, when the U.S. FinCEN launched new tips, we delayed our launch to make sure full compliance. This determination underscored our understanding that regulatory adherence is important for our platform’s longevity.
Investing, upgrading and automating core elements of our threat based mostly program – corresponding to BSA/AML, sanctions, governance, transaction monitoring, high quality assurance and coaching packages – has been integral to our international 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 property 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 great distance towards stopping illicit actions, thereby safeguarding the integrity of the crypto market. As a part of our dedication, we’re implementing international requirements corresponding 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 purchasers place in us. This implies complying with laws 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 laws applicable to the crypto business whereas difficult proposals which we don’t consider make sense.
We prioritize transparency in our compliance processes. For instance of our dedication, we incessantly work with regulation enforcement and regulatory companies all over the world. We offered 2,510 knowledge packages to international regulation enforcement and regulatory companies in response to lawful requests for Kraken consumer knowledge in 2023, demonstrating our dedication to cooperating with regulation enforcement to advance international crypto adoption.
We do that in line with strict insurance policies and procedures designed to guard consumer privateness to the utmost extent allowed by regulation. You may assessment which companies requested knowledge final yr in our 2023 Kraken Transparency Report.
Core international compliance practices
Kraken’s crypto compliance program is designed to detect, mitigate and forestall monetary crime, market abuse, knowledge privateness breaches and fraud whereas defending its purchasers and, extra broadly, the crypto markets.
Our greatest at school Compliance crew applies knowledge pushed, threat based mostly options leveraging automated “regtech” to our insurance policies, procedures and controls. Our Board of Administrators and govt 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 laws: This consists of AML, sanctions, terrorist financing, markets regulatory, knowledge privateness and client safety guidelines in geographies the place we function to guard our purchasers and to forestall malicious actors from exploiting our platform. This consists of 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 knowledge pushed reporting: We constantly strengthen our threat based mostly 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 inner high quality assurance oversight.
- Funding in compliance experience: Our international compliance crew consists of consultants from regulatory our bodies, regulation enforcement and the personal sector, guaranteeing sturdy and complete practices which bear ongoing coaching.
Constructing a dynamic compliance operate match for the longer term
Evolving regulatory regimes all over the world additional punctuate the significance of compliance and its rising position inside the crypto business. New guidelines imply extra required registrations, reporting and disclosures.
Given this backdrop, we’re dedicated to constructing a forward-focused compliance operate that:
- Protects our purchasers: Our program places our purchasers first, defending their safety and privateness. We provide them best-in-class services and products whereas complying with relevant regulation.
- Anticipates and addresses regulatory adjustments: We’re dedicated to evolving our compliance methods to satisfy present and rising laws.
- Collaborates with regulation enforcement: We work intently with authorities in any respect ranges to forestall platform misuse and defend crypto traders.
- Engages with business and policymakers: We purpose to form crypto constructive insurance policies that help the expansion and innovation of the crypto business, with out imposing undue burden on purchasers or the sector.
We designed our compliance program to flexibly adapt to dynamically altering international crypto laws. We proceed to scan the horizon to remain forward of regulatory adjustments, sustaining a protected and dependable platform that upholds the rules of monetary freedom.
