Kraken Says Requesting Monero Investor Personal Data Was Wrong, Will Keep XMR Listed

Kraken, the global cryptocurrency exchange, acknowledged that it had asked Monero investors for excessive personal information and said it had withdrawn those requests. The exchange also said it will continue to support Monero trading.

Blockchain Reporter said on October 24 that Kraken co-Chief Executive Officer Arjun Sethi wrote on X that emails sent to Monero investors requesting personal information were a mistake. He said all related requests had been withdrawn.

Monero is a leading privacy coin designed to make it difficult for outsiders to identify transacting parties or transaction amounts. Because of that feature, some exchanges have stopped supporting the token, citing anti-money laundering regulations.

Kraken had previously asked some customers who bought Monero and then withdrew it to personal wallets to disclose their occupation, source of funds and the purpose for using the withdrawn Monero.

Sethi said there was no legal obligation behind those requests. He said an employee had treated it as a risk signal because a young customer was holding a large amount of money. But that was not a risk signal. It was simply one of Kraken's customers.

He also stressed that it was inappropriate to ask how assets would be used after they had been withdrawn. Asking where the funds came from is legitimate, he said, but asking how funds will be used after they leave the exchange is not.

Sethi also reaffirmed that Monero will remain listed. Customers will continue to be able to buy Monero on Kraken and move it to personal wallets, he said.