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Kraken CEO: Crypto Users Should Not Keep Their Funds With Centralized Exchanges

It is always suggested that if the users have the desire to claim real ownership of their digital currencies, then they have to use cold storage for keeping these currencies and try to protect their private keys. However, many consumers still use centralized exchanges for keeping their coins. Crypto users might be affected by these kinds of things in the future.

Jesse Powell is the Chief Executive Officer of Kraken, which is one of the world’s most famous crypto exchanges. He advised that consumers should keep their capital out of the exchanges. He is one of the crypto experts who believe that consumers should use cold storage for keeping their funds.

There’s the possibility that the users’ accounts can be frozen, and their funds get stuck in a crypto exchange, so they can avoid such an awkward situation by taking out their funds from the cryptocurrency trading platforms into a personal wallet. If governments ask exchanges to freeze users’ assets, they can protect their digital currencies in this way.

This issue was discussed when Canada’s Deputy Prime Minister Chrystia Freeland said that the cryptocurrency accounts were frozen after being reported by RCMP. Adding more, she said that there’s a possibility more accounts will be frozen in the coming days. Protests have prompted the Canadian government to take drastic steps against citizens, like freezing bank accounts of protesters and cryptocurrency accounts.

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The governments and the centralized regulatory authorities ordered the exchanges to implement AML and KYC rules so that illegal activities could be prevented. In this situation, crypto investors are bound to provide detailed information with cryptocurrency platforms, such as identification photos, clients’ addresses, names, and surnames.

Jesse Powell tweeted, “If anyone disagrees with the government, then you can impound their funds or abolish licenses.” Additionally, he said that removing them from the fiscal system is also a way for governments to punish those people who disagree with them.

A crypto user said that Kraken could be placed in such a position that it would have to block assets in the coming days without the consent of the court. Jesse Powell replied that there’s a possibility to happen, and they have to comply. He added if this kind of situation teases you, then you should not keep your wealth with any centralized or regulated custodian. You can take out your coins or cash because we can’t provide you protection. You should trade peer-2-peer.

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Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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