Kraken: NY Attorney General’s Inquiry ‘Publicity Stunt,’ Japan’s VC Act ‘Good Example’

Crypto exchange Kraken has responded to the New York Attorney General’s (NYAG) inquiry launched last week into cryptocurrency exchanges, calling the initiative a “publicity stunt,” and referring to Japan’s virtual currencies act as a “good example” of “relatively” reasonable regulation, according to a blog post April 22.

Attorney General (AG) Eric T. Schneiderman launched the “Virtual Markets Integrity Initiative” on April 17 by sending letters to 13 cryptocurrency exchanges, giving them a two-week deadline to answer a three-page questionnaire covering topics like market manipulation, preventing insider trading, and customer funds protection. Kraken writes that this initiative “comes off as a publicity stunt,” adding that they “would have given the same response to the AG of North Korea.”

Kraken states they found the NYAG’s initiative offensive, saying that the two-week deadline is too short, the questions are “irrelevant,” and most of the information asked for is either available on their website, was already provided to government bodies, or is confidential due to security reasons or as trade secrets.

Kraken also points out that they have no New York customers, as they left after the implementation of the BitLicense:

“AG demands Kraken, which has no NY clients, to assist in protecting NY consumers (presumably against those who have obtained the BitLicense), without offering any sort of compensation for the professional consulting work.”

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