Cryptocurrency Exchange Kraken Mulls Plans for SEC’s ATS License

Kraken is not alone in making moves toward becoming a SEC-compliant alternative trading system.

San Francisco-based cryptocurrency exchange Kraken is mulling ‎registration with US regulators as a licensed broker-dealer firm or ‎an alternative trading system (ATS), Bloomberg reports.‎

The move comes just as the US Securities and Exchange ‎Commission is seeking legitimate platforms serving as trading venues ‎for digital assets. The Wall Street’s top watchdog made it clear that ‎any entity wants to become an ATS needs to register with the SEC as a broker-dealer and become a member of a self-regulating organization, such as the ‎FINRA.‎

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If successful, the Kraken ATS will provide a secondary market ‎liquidity for ICO tokens that are offered and sold as securities. An alternative trading system is a trading venue that is not regulated as ‎an exchange but operates for matching the buy and sell orders of its ‎subscribers.

‎“We would probably get registered as a broker-dealer and then an ‎ATS. I don’t think it necessarily helps ‎the business. I think we’re doing everything right anyway,’’‎ said Jesse Powell, the CEO and founder of Kraken.

Powell, whose exchange ranks in the top 15 in trading volume, refused last month to hand over business operation ‎details to New York Attorney General’s office after ‎receiving a recent order.‎ The CEO of Kraken said he found the exploration insulting.

“The AG doesn’t have any authority over us. Two things I really hate are bullies and hypocrites, and this guy is both,’’ he added in an interview.

‎Kraken is not alone in making moves toward becoming an ATS. Recently, Coinbase and ‎Bittrex were reportedly in talks with the SEC to launch the world’s first compliant ATS for ‎blockchain assets.‎

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