Kraken Under Probe for Allegedly Violating US Sanctions on Iran

blockchain.news:

Cryptocurrency exchange Kraken is under federal investigation for potential violation of U.S. sanctions by allowing users in Iran and elsewhere to purchase and sell digital tokens, the New York Times reported citing sources familiar with the matter.

Five people with knowledge of the matter or exchange affiliation told the New York Times that Kraken is suspected of allowing customers in Iran and other sanctioned nations to use its exchange despite public calls prohibiting companies from doing so. The report stated that the sources requested for their identities to remain anonymous due to fear of retaliation.

The United States has upheld economic sanctions against Iran since 1979, and this means businesses based in the U.S. cannot do business with Iran or buy/sell goods to anyone in the nation.

According to the report, the U.S. Treasury Department's Office of Foreign Assets Control has been investigating Kraken since 2019 and is expected to impose a fine on the exchange. However, the regulator has not indicated a timeline for the enforcement action.

Kraken Chief Legal Officer Marco Santori talked about the development and said the exchange would not comment «on specific discussions with regulators.» The executive further stated: «Kraken has robust compliance measures in place and continues to grow its compliance team to match its business growth. Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues».

Several crypto platforms have proactively blocked platform access to users in Iran, and North Korea, among many others, in the face of a growing debate concerning international sanctions.

In March, the world's largest NFT marketplace, OpenSea, blocked