Kraken Co-CEO admits incorrectly requiring XMR users to explain withdrawal purposes, has retracted the relevant information collection request.

On October 24, Cryptopolitan noted that Kraken co-CEO Arjun Sethi acknowledged on the X platform that the exchange's prior practice of emailing Monero (XMR) buyers to request details such as their employer, source of funds, and withdrawal purpose was improper, and these requirements have now been retracted.

Sethi stated that this review stemmed from internal staff flagging a young client holding a large amount of funds as a risk indicator, but clarified that no regulatory rules require exchanges to ask users about their post-withdrawal fund usage. He emphasized that while verifying the source of funds is a legitimate compliance requirement, how users utilize their assets after withdrawing them from the exchange should not be subject to such scrutiny.

Kraken has now notified affected customers that they do not need to provide the requested information and confirmed that XMR will continue to be listed for trading. However, the exchange will still retain necessary source-of-funds verification mechanisms in accordance with anti-money laundering regulations.