Kraken to Shut Down Margin Trading for US Users in Less than Two Weeks Due to ‘Regulatory Guidance’
“Kraken believes in common-sense regulations that protect market participants but “do not restrict their freedom to purchase, sell, hold and use cryptocurrency,” said the exchange.
US-based cryptocurrency exchange Kraken has announced new changes to its margin-trading program from this month.
These changes are made in the “light of regulatory guidance about leveraged digital asset transactions,” said the exchange in its official announcement.
Beginning June 23, 2021, the exchange would no longer offer margin trading to its US clients who do not meet certain requirements.
Those living outside the US and are of the Starter tier need to verify to the intermediate tier to continue margin trading.
After the deadline, these clients can only reduce their existing margin position exposure, and any open margin positions not closed out or settled by then would simply expire 28 days after the time they were opened.
The company will provide more information about the restrictions through email to US clients and Starter tier clients who are currently trading on margin.
As for those in the Intermediate and Pro verification levels will remain unaffected. The exchange said,
“Kraken’s mission is to accelerate cryptocurrency adoption so everyone can achieve financial freedom and inclusion. We believe in common-sense regulations that protect market participants and do not restrict their freedom to purchase, sell, hold and use cryptocurrency. We will continue to advocate for that freedom.”
A week back, Kraken CEO Jesse Powell said in an interview that they are in “preparation mode” right now for its initial public offering (IPO). At the time, Powell also said that he “stands by” his $200,000 per BTC target before the year is over and that people don’t have the vision of what's coming with crypto or BTC would already be worth over a million dollars.