Cryptocurrency exchanges are facing a tough time as governments ramp up investigations into their operations. However, Kraken is adding new cryptocurrencies to enlarge the investors’ option base despite the incoming crackdown.
Recent reports indicate that some cryptocurrency exchanges operate outside the laws set by the US Securities and Exchange Commission (SEC). In fact, Investing.com reports that 1Broker is now under government custody in the US due to flouting SEC regulations. As per the reports, the exchange was offering securities swaps to US clients without proper registration.
All Gloom Even as Kraken Adds New Cryptocurrencies
As a result, the Federal Bureau of Investigations (FBI) seized the 1Broker.com website until further investigations are complete. 1Broker team assured clients that it is working with authorities to allow them to withdraw their funds.
Also, Forbes cited a New York State Attorney General report in mid-September which claimed Kraken could be flouting SEC regulations. In the report, Forbes said that global cryptocurrency exchanges lack integrity, hence they might be operating unlawfully.
This came after Kraken refused to participate in the report. For this reason, many analysts conclude that the accusation could be with malicious intent. However, this is a very tough period for exchanges as challenges arise from every direction.
According to data on CoinMarketCap, most cryptocurrencies are performing very poorly. As a result, there is a reduction in investor activity and a reduced cumulative trading volume. In this view, cryptocurrency exchanges are not earning good money that can sustain a successful business model.
New Additions Could Save the Day
Perhaps this is the reason why Bloomberg reports that Kraken might release 57 employees. The publication goes on to add that all of the layoffs will come from North America. However, some Reddit users cite a security breach as the reason for the layoffs. On the other hand, the exchange cites the ongoing downturn in the digital currency market as the reason for the layoffs.
Kraken is adding new cryptocurrencies on its platform against this gloomy background. They include Cardano (ADA) and Quantum (QAU). This brings the number of supported coins to 19. Presently, both coins are trading at fairly higher prices then before. In the past 24 hours, Cardano posted a slight increase while Quantum added 14% to its value.
Mati Greenspan, senior analyst at eToro, observes that Cardano has huge potential to perform better in future. Therefore, Kraken seems to have chosen wisely. However, Greenspan advises investors to take more time to study the market and note the behavior of fundamentals.
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
Join our Telegram Group To Stay Up To Date With Crypto News