Kraken backtracks on its controls around Monero (XMR)

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https://cryptoast.fr/kraken-marche-arriere-controles-retraits-monero-xmr/

Buy Monero (XMR) on Kraken, then transfer your tokens to a personal wallet: a common operation which has nevertheless caused some customers to receive an unusual email from the platform. The exchange asked them to specify the name of their employer, the origin of their funds and, above all, what they intended to do with their cryptocurrencies after their withdrawal.

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the monero:native emails were us. they were wrong. here is what happened and what changed.

what happened - clients who bought xmr with their own money and withdraw it got an email asking for employer, source of funds and what they planned to do with their coins - no rule…

According to Arjun Sethi's explanations, there were no rules justifying the requests sent to customers. At the origin of this initiative, an employee considered the profile of a young user holding a large sum suspicious, thus triggering an unjustified alert.

On social networks, many users have denounced practices deemed intrusive. Some have announced plans to move their entire XMR to self-hosted wallets, while others have said they are considering leaving Kraken permanently.

Indeed, if verifying the origin of funds is part of the classic compliance and anti-money laundering obligations, asking customers about the future use of their cryptocurrencies raises more questions about respect for privacy.

Faced with criticism, the co-CEO of Kraken quickly spoke on X to recognize the platform's responsibility.

The emails regarding Monero came from us. They were a mistake.

The manager then detailed the corrective measures put in place. The requests were canceled and affected customers were informed that they no longer had to provide any supporting documentation. Kraken also removed the question regarding the use of cryptocurrencies after their withdrawal, deemed unacceptable by Arjun Sethi.

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The manager, however, recalled that verifying the origin of funds remained a legitimate approach within the framework of compliance obligations. On the other hand, he believes that the platform does not have to ask its clients what they will do with their assets once they are withdrawn.

Arjun Sethi also confirmed that XMR will remain listed on Kraken, with the ability to purchase it and transfer it to a personal wallet.

Machine-translated from French