"At any moment the SEC will show up, so all crypto companies have to be ready."
Cryptocurrency exchange company Kraken is being investigated by the Securities and Exchange Commission (SEC) of the United States (US) for violations of unregistered securities offerings in the country.
The investigation into Kraken comes as the crypto market is increasingly being monitored by the US in the wake of the FTX collapse which has caused a massive hemorrhaging of digital assets since last year.
While Kraken is under investigation by the SEC, several other companies that offer crypto services are also facing hurdles negotiating with regulators who often warn against trading digital assets subject to the agency's rules.
It is well known that Kraken is headquartered in San Francisco and supports over 185 different cryptocurrencies on their website with a daily trading volume of over $650 million, but unfortunately it is still unclear how many cryptocurrencies US customers can trade.
Earlier in 2017, Kraken settled a $360,000 payment after being sued by the Treasury's Office of Foreign Assets Control for violating US sanctions against Iran.
Kraken's current performance does not seem to be encouraging following being under SEC investigation and acting to close its operations in Abu Dhabi less than a year after being granted a local license.
On a different side, the SEC is also currently investigating Coinbase Global Inc which is believed to be offering unregistered securities digital assets.
