The Commodity Futures Trading Commission (CFTC) has issued an order against Kraken, a top crypto exchange. The charges were filed against Payward Ventures Inc. (Kraken's owner) as civil financial consequences for allegedly violating the Commodities Exchange Act.
The CFTC says that Kraken has not filed due compliance requirements as a futures commission merchant and service provider, and as such has illegally offered margined retail commodity transactions in digital assets to its U.S. customers who were not eligible for the said financial products. The CFTC has traced this activity to be between June 2020 and July 2021.
For the offerings to be appropriate, Kraken must register as a Designated Contract Market (DCM) or FCM for futures products.The DCM status is necessary for offering, while …
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