off-the-wire

Crypto exchange Kraken to shut down staking service, pay $30 mln in settlement with U.S. SEC

Kitco Media
By Reuters
Published:
Updated:
Reuters
Feb 9 (Reuters) - Crypto exchange Kraken has agreed to shut down its cryptocurrency staking service and pay $30 million in penalties as part of a settlement with the U.S. Securities and Exchange Commission, the agency said on Thursday.


Kraken offers its customers the ability to “stake” certain crypto tokens in order to earn rewards. Its website advertises that users can earn up to 20% in annual yield if they pledge to lock up their assets for a certain period of time.


“Today’s action should make clear to the marketplace that staking-as-a-service providers must register and provide full, fair, and truthful disclosure and investor protection," said SEC Chair Gary Gensler in a statement.
(Reporting by Hannah Lang in Washington, Editing by Franklin Paul)

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