Dave Ripley said that Kraken doesn’t provide security offerings, so no need to register with the US Securities body.
Kraken is a popular crypto exchange and stands at 5th rank, in terms of 24 hours global trade volume. Exchange is known to provide highly secured crypto services. The backend company is based in the United States and was founded in 2011.
On 24 September, Reuters reported that the newly appointed Chief executive officer of Kraken crypto exchange, Dave Ripley, is not planning to register the Kraken exchange with the United States Securities and Exchange Commission (SEC).
According to the new Kraken CEO, Kraken doesn’t offer trading of Security assets, So there is no need to register the exchange under the Security token offerings (STOs).
However, Ripley refused to register with the SEC but still, they can consider if any security token will attract the exchange. Ripley will replace old Kraken CEO Jesse Powell, who served as CEO for 11 years.
Security token offerings (STOs)
The Security token offerings, or say STOs, started to gain huge traction in the crypto sector in 2017. From 2017 to 2018, many crypto companies rapidly registered with SEC STOs.
However, listing the crypto exchange under STOs is better for the companies to operate business in the United States but it is not better for the users and also for the companies on other side because it forces the STOs registered companies to follow high compliance costs and rigorous vetting processes involved in security token listing.
At present, the US SEC agency is trying to force the majority of Crypto assets into the security asset class. According to SEC chairman Gary Gensler, there should be no new rules on Cryptocurrencies because these cryptocurrencies bear the same nature as Security assets but only backend technology is different which is not a big thing.