As Kraken withdrew requests for information from some customers who bought Monero (XMR) with their own money and withdrew it, co-CEO Arjun Sethi said it was unacceptable to ask how coins would be used after leaving the exchange.
According to Wu Blockchain, the exchange emailed some customers asking about their employers, the source of their funds, and what they intended to use the coins for. Sethi said the requests were wrong and had been withdrawn, and that the customers in question had been told they did not need to provide any information.
He drew a line between the source of funds and how they are used
Sethi said he considered it reasonable to ask where the money came from, but stressed that it was unacceptable to question what customers planned to do with their coins after withdrawing them from the platform. He also said there was no rule requiring these requests.
In one example Sethi shared, a customer had been flagged solely because they were young and had a large amount of funds. Kraken removed the questions about intended use after withdrawal.
Sethi also said that privacy-focused cryptocurrency Monero will remain listed on the exchange.
Not investment advice.