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Cryptocurrency exchange Kraken will not comply with New York inquiry

San Francisco-based crypto exchange Kraken will not comply with the New York attorney general’s request for information.

On Tuesday, April 17 New York Attorney General Eric Schneiderman launched a fact-finding inquiry into the policies and practices of cryptocurrency exchanges. 13 crypto exchanges were asked to fill out a questionnaire sharing details on areas such as ownership, fees, trading suspensions, and money laundering. The AG’s office imposed a May 1 deadline for compliance.

Most exchanges expressed support for the request, stating that they were looking forward to cooperating with the AG’s inquiry and increasing transparency in the crypto area. But Kraken, which is operating outside the state of New York, did not like the interference of a state authority outside its jurisdiction.

In his Twitter post, Kraken CEO Jesse Powell criticized the attorney general’s request for information, indicating that while the exchange is «happy to help government understand our business», the most recent request «is not the way to go about it». He added that Kraken will not provide any information about its business.

In 2015, Kraken announced that it would leave New York because of the BitLicense, the state’s cryptocurrency regulatory framework.

«Kraken left New York because New York is hostile to crypto, and this «questionnaire» we received today proves that New York is not only hostile to crypto, it is hostile to business», – said Powell.

A spokeswoman for New York Attorney General’s office, Amy Spitalnick responded to Kraken’s refusal.

«Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is basic information that credible platforms should all have on hand», – she said.