Kraken, a leading global cryptocurrency exchange, has reversed course on a controversial practice of requesting personal financial information from users of the privacy-focused altcoin Monero ($XMR). The exchange's co-CEO, Arjun Sethi, admitted that the requests were improper and have since been discontinued.
Sethi explained that Kraken had emailed certain users who purchased Monero with their own funds and then withdrew it, asking for details about their employers, the origin of their funds, and their plans for the withdrawn cryptocurrencies. He clarified that these requests were not mandated by any regulatory requirements but were instead triggered by internal risk assessments.
The CEO acknowledged that while questioning the source of funds is reasonable, inquiring about how users manage their money after withdrawal is inappropriate. He emphasized that Kraken's primary role is to facilitate transactions, not to oversee users' financial activities.
In a reassuring statement, Sethi confirmed that Monero ($XMR) will continue to be listed on Kraken. He encouraged users to buy and withdraw the cryptocurrency to their own wallets, reaffirming the exchange's commitment to supporting the asset.