Kraken, one of the world’s largest cryptocurrency exchanges, has backtracked on emails sent to users of the privacy-focused altcoin Monero (XMR) that requested personal financial information.
Kraken, one of the world’s largest cryptocurrency exchanges, has backtracked on emails sent to users of the privacy-focused altcoin Monero (XMR) that requested personal financial information. Kraken co-CEO Arjun Sethi acknowledged that the requests were wrongful and announced that the practice has been terminated.
According to Sethi’s statement, Kraken emailed some users who had purchased Monero with their own money and then withdrawn it from the exchange, asking for information about their employers, the source of their funds, and how they planned to use the withdrawn cryptocurrencies.
However, Sethi stated that these requests did not stem from any regulatory obligation. He explained that a client possessing a high amount of assets despite being young was considered a suspicious transaction, but argued that this alone was not an indicator of risk.
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Sethi announced that Kraken has abandoned the practice, stating that the information requests sent to users have been withdrawn and that those involved have been informed that they do not need to provide any explanation.
Sethi stated that while questioning the source of the funds is reasonable, asking users how they will manage their money after withdrawing it from the platform is unacceptable.
“Where your money came from is a reasonable question. However, what you do with it after you leave the platform is not our concern.”
On the other hand, Sethi specifically added that Monero (XMR) will continue to be listed on Kraken.
Sethi said, “XMR will remain listed. Buy it here and withdraw it to your own wallet. That’s our product.”
*This is not investment advice.
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