SEC launches investigation into Kraken

The US Securities and Exchange Commission (SEC) is looking into Kraken, one of the biggest cryptocurrency exchanges, for potential violations of securities laws.

Kraken under investigation

The investigation by the regulatory body into the potential sale of unregistered securities by Kraken has progressed significantly, according to Bloomberg.

A resolution to the investigation may be imminent, as a settlement could be reached in the near future. The company has yet to make any public statement regarding the situation.

In the crypto market, Kraken holds a significant position, being placed fourth in daily trading volume as recorded by CoinGecko. This exchange offers its cryptocurrency trading along with additional services like a recently-launched NFT market.

Regulation and legal scrutiny are this year’s themes for crypto

As the SEC continues to ramp up its enforcement actions against cryptocurrency exchanges in recent months, this investigation is yet another example of such efforts. Just last month, the regulator took action against both Genesis and Gemini for allegedly providing unregistered securities.

According to Kevin O’Leary Binance may be next. The renowned venture investor and star of the popular TV show Shark Tank has voiced his concern in an interview with Scott Melker. O’Leary stated that shareholders of Binance should be worried about the growing global attention being given to crypto exchanges and that cryptocurrency exchange Binance could soon face governmental scrutiny.