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 international crypto adoption to advertise monetary freedom.
Proactive regulatory adaptation
Kraken has been proactive in adapting to regulatory adjustments. As an example, in 2013, when the U.S. FinCEN launched new tips, we delayed our launch to make sure full compliance. This resolution underscored our understanding that regulatory adherence is significant for our platform’s longevity.
Investing, upgrading and automating core parts of our danger primarily based program – akin to BSA/AML, sanctions, governance, transaction monitoring, high quality assurance and coaching packages – has been integral to our international compliance strategy.
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 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 continuing 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 international requirements akin 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 purchasers 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 business whereas difficult proposals which we don’t consider make sense.
We prioritize transparency in our compliance processes. For instance of our dedication, we steadily work with legislation enforcement and regulatory companies all over the world. We supplied 2,510 knowledge packages to international 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 international crypto adoption.
We do that according to strict insurance policies and procedures designed to guard consumer privateness to the utmost extent allowed by legislation. You’ll be able to assessment which companies requested knowledge final 12 months in our 2023 Kraken Transparency Report.
Core international compliance practices
Kraken’s crypto compliance program is designed to detect, mitigate and stop monetary crime, market abuse, knowledge privateness breaches and fraud whereas defending its purchasers and, extra broadly, the crypto markets.
Our greatest at school Compliance staff applies knowledge pushed, danger primarily based options leveraging automated “regtech” to our insurance policies, procedures and controls. Our Board of Administrators and government 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 client safety guidelines in geographies the place we function to guard our purchasers and to stop 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 danger primarily based 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 inner high quality assurance oversight.
- Funding in compliance experience: Our international compliance staff consists of consultants from regulatory our bodies, legislation enforcement and the personal sector, making certain 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 function throughout the crypto business. 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 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 legislation.
- Anticipates and addresses regulatory adjustments: We’re dedicated to evolving our compliance methods to fulfill present and rising rules.
- Collaborates with legislation enforcement: We work intently with authorities in any respect ranges to stop platform misuse and defend crypto traders.
- Engages with business and policymakers: We intention to form crypto optimistic insurance policies that assist 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 rules. We proceed to scan the horizon to remain forward of regulatory adjustments, sustaining a protected and dependable platform that upholds the rules of economic freedom.
