Cryptocurrency exchange Kraken said it will no longer offer margin trading for U.S. clients who do not meet certain requirements.
- In a blog post Wednesday, Kraken said the changes are due to regulatory guidance about leveraged digital asset transactions.
- The exchange didn't specify what those new requirements are, just that they will be communicated via email.
- Kraken said its clients outside of the U.S. at the Intermediate and Pro verification levels will not be affected.
- Non-U.S.-based clients in the Starter tier must become verified to the Intermediate tier to continue margin trading, said the exchange.
- Any open margin positions by starter tier clients and U.S. clients that have not met the new criteria will expire 28 days after the time they were opened if they haven't been settled by June 23.
- The exchange is also reportedly in talks to raise capital in a new funding round that could increase its valuation to $20 billion.