Powell Appreciates DOJ’s Actions Against Binance
Jesse Powell, the co-founder of Kraken cryptocurrency exchange, has expressed his approval of the recent crackdown on Binance by the US Department of Justice (DOJ). Powell’s perspective sheds light on the challenges faced by the crypto industry and emphasizes the need for regulatory actions.
Investigations Answer Critical Questions
In the past year, major crypto exchanges like FTX and Binance have faced federal scrutiny for alleged misconduct, including misappropriation of funds and violating Anti-Money Laundering (AML) regulations. According to Powell, these investigations are crucial in addressing questions about the industry’s rapid growth and practices.
Powell’s Thoughts on Binance Controversy
On November 23, Powell shared his thoughts on the Binance controversy, highlighting its former CEO Changpeng “CZ” Zhao and the involvement of the DOJ. He believes that the recent legal actions against Binance have provided answers to long-standing questions about the exchange’s operations and its rise in the cryptocurrency market.
Welcoming Legal Proceedings Against Binance
Powell welcomes the legal proceedings against Binance and CZ, considering them a positive step. He acknowledges the challenges involved in going after offshore entities and points out that US-based exchanges like Kraken, Coinbase, and Ripple are easier targets. Powell criticizes Binance’s no-KYC practice and emphasizes self-policing within the industry.
Kraken’s Commitment Amidst Legal Challenges
Despite Kraken’s commitment to a long-term approach, they are currently facing a lawsuit filed by the US Securities and Exchange Commission (SEC) on November 20. The SEC alleges that Kraken commingled customer funds and failed to register as a securities exchange. Kraken plans to defend itself in court against the SEC’s complaint.
Criticizing SEC’s Focus
Powell criticizes the SEC for targeting smaller entities like Kraken, Ripple, and Coinbase while potentially overlooking more significant wrongdoers. He questions the SEC’s prioritization based on convenience rather than the severity of offenses, suggesting it goes against their mandate to protect the people.
Hot Take: The Need for Regulatory Actions
The appreciation shown by Jesse Powell towards the US Department of Justice’s actions against Binance highlights the importance of regulatory actions in the cryptocurrency industry. The investigations conducted on major exchanges like Binance and FTX are crucial in addressing concerns about misconduct and ensuring fair practices within the industry. Powell emphasizes the need for self-policing within the crypto community and encourages users to support reliable services that play the long game. Despite facing legal challenges themselves, exchanges like Kraken strive to maintain a commitment to transparency and compliance. Overall, regulatory actions are necessary for building trust and protecting users in the rapidly growing world of cryptocurrencies.
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