Kraken has agreed to pay the US Securities and Exchange Commission (SEC) a fine of $30 million for not registering its “crypto-as-a-service” program.
SEC Chairman Gary Gensler said in a statementon Thursday that “This action It is clear to the market that service providers. Stake-as-a-Service Must come to register and full and fair disclosure and investor protection.”
The SEC alleges that Kraken has offered its stake to the public since 2019. The company claims that its “stake program is an easy-to-use platform with consistent returns on investment and payouts.”
“When an investor hands over their tokens to a service provider. stake-as-a-service They would then lose control of those tokens. and bear the risks associated with the platform with little protection,” the agency said.
Kraken said it has agreed to discontinue its on-chain stake service for U.S. customers only.
“Starting today, ether (ETH) staked in the on-chain staking program by customers in the US will be automatically unstaked and will no longer receive stake rewards,” a Kraken spokesperson said in a statement.
“Customers outside of the United States will continue to operate without impact,” the spokesperson added.
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