Kraken Thinks New Competition without CZ is "Fairer" Amid DOJ Scrutiny

Cryptocurrency exchanges have been facing tough times. Imagine these exchanges as big online shops, but instead of toys or clothes, they sell digital coins. In the past year, some of the biggest names in this world, like FTX and Binance, have caught the attention of the U.S. government. Because the government thinks they might have broken some important rules.

Jesse Powell, who helped start Kraken, another big digital coin shop, has been talking about this. He's glad that the government is asking tough questions, especially about Binance, which is one of the biggest exchanges. Powell thinks it's good to check if everyone is playing fair.

Understanding the Rules

These digital coin shops have to follow special rules to make sure they're safe and honest. One big rule is about not mixing up the money they hold for people with the company's money. Another rule is making sure they know who their customers are. This is to stop bad people from using these shops to hide or move money they shouldn't have.

Recently, Kraken, Powell's company, got into trouble too. On November 20, a group called the U.S. Securities and Exchange Commission, which makes sure companies follow money rules, said Kraken wasn't following these rules. They said Kraken was acting like a broker, dealer, and even a bank, without the right permission.

The Industry's Future

This news is important because it shows how new and old rules are clashing in the world of digital money. Kraken says it doesn't agree with what the government is saying and will fight back in court. They believe the government's actions are not helping people and are stopping new ideas from growing.

Overall, the world of digital coins is in a tricky spot. It's like a game where the rules are still being written, and everyone – from big companies to the government – is trying to figure out the best way to play.