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 modifications. As an illustration, in 2013, when the U.S. FinCEN launched new tips, we delayed our launch to make sure full compliance. This choice underscored our understanding that regulatory adherence is important for our platform’s longevity.

Investing, upgrading and automating core parts of our danger based mostly 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 danger 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 folks with new methods to transact in a borderless, real-time and honest 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 foundations 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 assist candidates who advance legal guidelines and rules applicable to the crypto trade whereas difficult proposals which we don’t imagine make sense. 

We prioritize transparency in our compliance processes. For example of our dedication, we steadily work with legislation enforcement and regulatory companies all over the world. We supplied 2,510 knowledge packages to world legislation enforcement and regulatory companies in response to lawful requests for Kraken consumer knowledge 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 may evaluation which companies requested knowledge 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, knowledge privateness breaches and fraud whereas defending its shoppers and, extra broadly, the crypto markets.  

Our greatest at school Compliance group applies knowledge pushed, danger 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 rules: This consists of AML, sanctions, terrorist financing, markets regulatory, knowledge privateness and shopper safety guidelines in geographies the place we function to guard our shoppers 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 preserve required licenses and work actively with regulators to stay in good standing, underscoring our dedication to lawful operations.
• Strong controls and knowledge pushed reporting: We repeatedly strengthen our danger based mostly controls whereas measuring and monitoring their effectiveness by way of actual time dashboard reporting.  
• Governance and unbiased testing: Our governance and controls are topic to danger assessments in addition to examined by unbiased third events, along with inside high quality assurance oversight.
• Funding in compliance experience: Our world compliance group consists of consultants from regulatory our bodies, legislation enforcement and the personal sector, making certain strong and complete practices which endure ongoing coaching.

Constructing a dynamic compliance operate match for the long run

Evolving regulatory regimes all over the world additional punctuate the significance of compliance and its rising function inside the crypto trade. New guidelines imply further required registrations, reporting and disclosures.

Given this backdrop, we’re dedicated to constructing a forward-focused compliance operate 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 modifications: We’re dedicated to evolving our compliance methods to fulfill present and rising rules.
• Collaborates with legislation enforcement: We work carefully with authorities in any respect ranges to forestall platform misuse and shield crypto traders.
• Engages with trade and policymakers: We intention to form crypto constructive insurance policies that assist 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 modifications, sustaining a secure and dependable platform that upholds the rules of monetary freedom.