The US-based cryptocurrency exchange, Kraken has unveiled changes to its margin trading program, which will take effect starting June 23, 2021. According to the announcement, the company will no longer offer margin trading for US-based customers who do not meet specific requirements that will be communicated via email.
For the non-US-based clients, Kraken said that the ones in the Starter tier must upgrade to the Intermediate tier to keep alive the margin trading feature within its account. However, the exchange clarified that clients outside of the United States at both Intermediate and Pro verification levels would not be affected by the new rulings. “Kraken is making these changes in light of regulatory guidance about leveraged digital asset transactions,” the company argued.
In addition, the crypto exchange announced that all Starter tier clients and US clients, who do not meet the additional requirements by the deadline set, would only be allowed to reduce existing exposure in margin position. “Please note that if you do not have open positions and do not wish to enter new margin trades, then you do not need to take any action,” it added.
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Newly-Launched Mobile App
“Kraken’s mission is to accelerate cryptocurrency adoption so everyone can achieve financial freedom and inclusion. We believe in common-sense regulations that protect market participants and do not restrict their freedom to purchase, sell, hold and use cryptocurrency. We will continue to advocate for that freedom,” the exchange commented on the new rules, which were not disclosed publicly and would be emailed to the customers.
The announcement comes in the wake of the recent launch of Kraken’s mobile app for Android and iOS devices, targeting the general public.
As Finance Magnates reported last week, through the app, which is available in the United States and most countries globally, the US-based exchange said that its users could buy and sell cryptos and arrange payments through different methods.