Kraken CEO: Crypto Exchange Won't Answer New York AG's Inquiry

San Francisco-based cryptocurrency exchange Kraken is not getting to reply to the the big apple professional person General's newly-unveiled inquiry into the system.

Kraken was one among thirteen exchanges that received a letter from the big apple professional person General Eric Schneiderman on Tues as a part of his new inquiry into cryptocurrency exchanges, as antecedently reported . whereas most exchanges usually welcome the inquiry and same they might fill out the hooked up form, Kraken took a distinct tack once reached for comment.

"Kraken's BitLicense-prompted exit from the big apple in 2015 pays another dividend nowadays," chief executive officer Jesse Powell same via email early Wednesday morning.

Powell created it clear that Kraken doesn't will answer the form, saying:

"I accomplished that we have a tendency to created the wise call to induce the hell out of latest York 3 years agone which we are able to dodge this bullet."

Kraken declared that it'd leave the state in 2015 thanks to the BitLicense, New York's cryptocurrency restrictive framework. in an exceedingly journal post at the time, the exchange known as the law "a creature therefore foul, therefore cruel that not even Kraken possesses the bravery or strength to face its nasty, big, pointy teeth."

Powell wrote Wednesday that Kraken is usually happy to have interaction with government bodies however criticized the AG's approach, adding: "Why do not you are attempting extracting this data from those businesses really in operation in your state?"

A advocate for the professional person General's workplace, UN agency saw Powell's remarks, told CoinDesk via email:

"Legitimate entities usually wish to demonstrate to their investors that their cash are protected. this is often basic data that credible platforms ought to all wear hand."

While Kraken isn't alone in having left the big apple thanks to the BitLicense, some state authorities still praise the laws.

"The restrictive structure that we have a tendency to created for virtual currency has helped our accredited corporations attract larger interest from customers, investors, and potential monetary services partners," the big apple Department of economic Services superintendent Maria Vullo same last week.

Yet lawmakers within the state ar watching the question of editing the framework - or doing away with it entirely. Indeed, throughout a round table discussion in February, trade stakeholders blasted the BitLicense, prompting a pledge from the state senators that hosted it to appear at however it should be reworked in lightweight of these issues.