Tough Crypto Regulation Forces Kraken to Restructure Compliance Department
The US Department of Treasury charged the leading crypto exchange Kraken for violating the 2020 executive order (EO13902) last year. The strict sanctions were passed into law by Former US President Donald Trump, limiting engagement with Iranian business partners in the manufacturing industry.
The authorities reported that the crypto exchange compliance system lacks the IP address blocking feature that encouraged users from restricted zone to conduct business through the Kraken platform. As a result, the troubled US-based crypto exchange settled a $362158 fine with authority and an extra $100000 to improve existing compliance measures.
Besides paying the fines, the Kraken team invested in staff training and launched blockchain monitoring devices to uphold company compliance. Later, Kraken announced a job opening for the compliance managerial role. This position has been vacant since 2019 when the former compliance officer Steven Christie resigned from office, citing competing interests with the largest crypto exchange Binance.
Rinaldi Joins Kraken Team
After a long wait, the Kraken chief compliance office has found a suitable replacement. CJ Rinaldi is a former compliance manager at Blockchain.com. In her previous role, Rinaldi made interesting efforts in integrating the Compliance Risk Assessment (CAR) model of 2004 into the crypto exchange operation, aiming at reducing compliance threats.
In addition, Kraken’s new staff chaired the Deutsche Bank International compliance team in early 2021. According to her professional overview, Rinaldi worked with the US SEC in 1991 and 1997, championing compliance with the regulations.
Before joining the SEC, the compliance expert had assisted US investment bank UBS in implementing the Consumer Protection Act of 2010 developed by Dodd-Frank.
Kraken Change in Management
Besides Rinaldi joining the Kraken team, the company has more leadership gaps to be filled. In 2022, the crypto exchange’s outgoing Chief Operating Officer (COO), Dave Ripley, announced plans to leave office.
Currently, Ripley’s vacant office is under Kraken CEO Jesse Powell as the firm awaits to find a suitable candidate. Besides Ripley quitting his job at Kraken in 2022, Kraken attracted new professionals for vacant finance and marketing positions.
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