In Order to Resolve Allegations of Iran Sanctions, Kraken Will Work With U.S. Regulators

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Last Updated on November 29, 2022 by Bitfinsider

The cryptocurrency exchange Kraken has agreed to pay a settlement fee of $362,000 to resolve claims that it violated sanctions against Iran, according to a statement released by the U.S. Treasury Department on November 28.

The Office of Foreign Assets Control, or OFAC of the United States Treasury Department looked into Kraken, one of the biggest bitcoin exchanges, in July 2022. In the end, it appearsĀ that Kraken provided services to customers from Iran and other countries that were under sanctions.

Investigations started in 2019

According to the New York Times, the inquiry started in 2019 with the help of “five people involved with the company or with knowledge of the investigation.” According to the investigations, as of June 2022, Kraken had accounts for more than 1,500 Iranian users. Additionally, 149 individuals in Syria and 83 people in Cuba had access to the cryptocurrency exchange.

Since 1979, the United States has imposed sanctions on Iran. Exports of goods or services to entities or individuals within the country are prohibited by these sanctions. Syria and Cuba are included on the list of nations that are restricted. Trading with or giving services to the aforementioned countries is punishable.

The OFAC asserted that Kraken disallowed users from sanctioned countries by failing to install procedures that identify users’ geolocation and IP addresses. The agreement represents the Treasury’s latest offensive against cryptocurrencies. Bittrex Inc. settled charges with the Treasury for over $30 million in October in relation to sanctions and anti-money laundering laws.

In accordance with the terms of the settlement, Kraken will commit $100,000 to sanctions compliance procedures, including technology and training initiatives to support sanctions screening.

Kraken’s interactions with authorities have been tumultuous. The US-based exchange was penalized $1.25 million last year for engaging in illegal trading. The fine comes as other cryptocurrency companies work to gain back consumer trust after FTX’s downfall


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