Kraken Exchange Suspected of Violating Iran Sanctions

U.S. Kraken exchange is reportedly being investigated by the U.S. Treasury for allegedly violating economic sanctions against Iran, the New York Times reported.

 

Quick Take

• Kraken allegedly allowed users in Iran and elsewhere to buy and sell digital tokens, the reportsaid, which cited five people with knowledge of the matter who wished to remain anonymous due to fear of retaliation.

 

• The U.S. TreasuryDepartment has been investigating the crypto exchange since 2019 and is expected to impose a fine, according to the report.

 

• The U.S. imposed sanctions on Iran in 1979 which prohibits the export of goods or services to individuals or entities in the country.

 

• “Kraken does not comment on specific discussions with regulators,” Marco Santori,Kraken’s chief legal officer, told Forkast via email, adding: “Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.”

 

• Kraken was slapped with a $1.25 million fine last year by the Commodity Futures Trading Commission for offering illegal off-exchange digital asset trading and failing to properly register with the agency.

 

• The ability of cryptocurrencies to circumvent sanctions has sparked intense debate after the West imposed broad sanctions on Russia following its invasion of Ukraine.

 

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