- Kraken settled the case by paying a $30 million fine and agreeing to end the programme.
- The SEC highlighted Kraken’s custodial staking service, which essentially pools funds.
On February 15th, a media outlet claimed that the Korean Financial Services Authority was investigating the staking services industry.
Concerns expressed by members of the cryptocurrency community regarding the fallout from the recent settlement between the SEC and Kraken in American court seem to be materializing. In the wake of the United States’ investigation of crypto-staking businesses, South Korean authorities want to do the same.
$30 Million Settlement
On February 9th, Kraken and the United States Securities and Exchange Commission (SEC) resolved the SEC’s complaint against Kraken’s staking incentives programme. Furthermore, Kraken settled the case by paying a $30 million fine and agreeing to end the programme.
Some legislative actions may be impacted, albeit the timetable and methodology of the research are unknown. Crypto staking, unlike more typical activities using digital assets, is still undefined under Korean legislation.
Kraken settled for a $30 million settlement and agreed to end its staking operation. Both members of the American crypto community and the acting commissioner of the SEC voiced their disapproval of the decision.
The Financial Services Commission in South Korea issued regulations in February that outline which forms of digital assets would be treated as securities and subject to the country’s strict regulatory framework. Securities are defined by law as investments in financial markets where the buyer is not obligated to make any further payments beyond the initial purchase price.
Moreover, the SEC highlighted Kraken’s custodial staking service, which essentially pools investor funds. This has been greeted by some on Twitter as good news for the cryptocurrency industry.
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