Crypto Exchange Kraken Settles With Treasury Department Over Sanctions Violations

Crypto Exchange Kraken Settles With Treasury Department Over Sanctions Violations

Crypto exchange Kraken has settled with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) over its apparent violations of sanctions against Iran. The cryptocurrency exchange has agreed to remit $362,159 to settle its potential civil liability and invest an additional $100,000 in certain sanctions compliance controls. Kraken Settles With OFAC

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced Monday a settlement with Payward Inc. (d/b/a Kraken), a Delaware-incorporated crypto exchange. The announcement states: Kraken agreed to remit $362,158.70 to settle its potential civil liability for apparent violations of sanctions against Iran … As part of its settlement with OFAC, Kraken also has agreed to invest an additional $100,000 in certain sanctions compliance controls.

According to the Treasury Department, between approximately Oct. 14, 2015, and June 29, 2019, “Kraken processed 826 transactions, totaling approximately $1,680,577.10, on behalf of individuals who appeared to have been located in Iran at the time of the transactions.”

The Department of the Treasury detailed: At the time of the apparent violations, Kraken did not implement IP address blocking on transactional activity across its platform.

Kraken voluntarily self-disclosed the apparent violations and cooperated with the OFAC’s investigation, the Treasury Department noted, adding that the crypto trading platform also “undertook significant remedial measures in response to the apparent violations.” The announcement adds: After identifying this problem, Kraken implemented automated blocking for IP addresses linked to sanctioned jurisdictions. Kraken also implemented multiple blockchain analytics tools to assist with its sanctions monitoring.

The Office of Foreign Assets Control has sanctioned several cryptocurrency trading platforms over time. For example, crypto exchange Bittrex was charged with sanctions violations in October. Tags in this story crypto exchange kraken, Kraken, kraken fined, Kraken OFAC, Kraken Office of Foreign Assets Control, Kraken settles, Kraken Treasury Department, OFAC, Office of Foreign Assets Control

What do you think about Kraken settling with the Treasury Department’s OFAC over sanctions violations? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. RBI Begins First Retail Digital Rupee Pilot in 13 Indian Cities With 8 Banks REGULATION | 3 hours ago SEC Strategic Plan: Crypto Initiatives Among Top Priorities Over Next 4 Years REGULATION | 5 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRBI Begins First Retail Digital Rupee Pilot in 13 Indian Cities With 8 Banks Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework

Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade