Powell fired back at the NYAG calling the questionnaire insulting, and stated that the startup company could not address all 34 points without diverting resources needed to fulfill their promises to customers to meet their roadmap goals on time. He refused to reaction the questionnaire, suggesting that the US government make an appointment and send officials to San Francisco te person if they desired to learn more about his business.
&ldquo,Wij left our cushy jobs spil founders of another successful company out of an ideological motivation to build that legitimate, professional exchange which would be capable of bridging crypto with traditional financial institutions and bringing it to the mainstream. That is still our mission today.&rdquo,&rdquo,
Powell listed the reasons for refusing to response the questionnaire te the postbode, with the primary issues being that they had already provided much of the information, the request for fresh information would disrupt Losbreken&rsquo,s business, kraken does not have Fresh York clients, and the request essentially te Powell&rsquo,s view amounted to unpaid consultancy work helping the NYAG to understand the crypto space. Powell pointed out that he would have identically refused the request had it bot made from a North Korean attorney spil well. The total list of reasons is spil goes after:
- The deadline of Two weeks is unreasonable given the scope.
- The publication of the request, lack of any prior communication and inclusion of exchanges which are clearly outside of the AG&rsquo,s jurisdiction (including kraken) raise questions about the true motive. It comes off spil a publicity stunt.
- The request is ill-prepared. It&rsquo,s an overly broad fishing expedition that asks questions irrelevant to the stated objective and misses visible questions that actually would be helpful.
- Much of this information wasgoed already provided to the NYDFS te 2014.
- Much of this information wasgoed already provided to FinCEN te our 2018 audit.
- Much of this information is publicly available on our webstek.
- Some of this information is proprietary, trade secret information and kept confidential for competitive reasons.
- Some of this information is very sensitive and kept confidential for security reasons.
- It is not clear that the finish production can remain private, especially given the government&rsquo,s latest track record of getting hacked.
- The AG requests Losbreken, which has no NY clients, to assist ter protecting NY consumers (presumably against those who have obtained the BitLicense), without suggesting any sort of compensation for the professional consulting work.
kraken is always willing to work with regulators and law enforcement. Whether you think you have us by the ball-sac or not, approaching us with some basic respect and having a conversation is always going to make the interaction smoother and help you get what you want swifter than storming te with your &ldquo,or else&rdquo, list of requests.
Powell makes it very clear that he feels personally insulted by the request for suggesting that kraken wasgoed ter some way subservient to the NYAG ter a way that a non-crypto related company would not be, and stressed that his wasgoed a legitimate business and that while scams were rampant ter the crypto space, crpyo-specific regulation wasgoed not necessary to prevent cases of plain fraud. The SEC has charged a number of ICO founders with fraud recently, the co-founders of the Centra Tech ICO being a prime example.
Powell pointed out that he wasgoed willing to help the NYAG and US government understand the crypto space and wasgoed even willing to do so for free, but seemed to take actual offence at what he perceived spil an order transferred down from what he called an &ldquo,ivory tower&rdquo,. He stated that customers cared about trading and security, not regulation and &ldquo,conforming to Wall St.&rsquo,s pic of what crypto markets should be&rdquo,. He has stated on a number of occasions that crypto investors need to look out for themselves and perform due diligence when investing.
His stiff stance against the Fresh York AG has divided opinions, but certainly made big swings te the crypto community and may end up prompting other exchanges to re-evaluate their options when it comes to dealing with government authorities.