US-based clientele of Kraken will see a halt in margin trading services unless they satisfy newly established criteria, the cryptocurrency platform recently announced.
Regulatory Shifts Driving Policy Adjustments
According to a Wednesday blog update, regulatory directives concerning leveraged dealings with digital assets have prompted Kraken’s decision to amend their margin trading offerings.
Opaque Details on New Eligibility Standards
The exchange refrained from revealing the specifics of these updated qualifications, indicating instead that affected users will receive detailed information directly through email notifications.
Impact on International Users and Verification Tiers
Clients outside the United States holding Intermediate or Pro verification status remain unaffected by these changes, Kraken confirmed.
Those in the Starter tier located outside the US, however, will need to upgrade to Intermediate verification to maintain access to margin trading features.
Timeframe for Open Positions
Margin positions currently held by Starter-tier users, as well as US clients who fall short of the new eligibility bar, face automatic expiration 28 days after opening if unsettled by June 23.
Upcoming Capital Injection and Company Valuation
Separately, Kraken is said to be engaged in capital-raising negotiations that might boost its valuation to approximately $20 billion in an imminent funding round.
Additional Context on the Crypto Market
Amid the evolving regulatory landscape, global cryptocurrency exchanges have seen a surge in compliance measures. In 2023, the total market capitalization for cryptocurrencies hovered around $1 trillion, emphasizing the sector’s significant economic footprint and the growing scrutiny from financial authorities.
