Kraken Requests Withdrawal of Over $1 Billion Worth of ETH from Shanghai Exchange

According to reports, Nansen data shows that after Shanghai upgraded its ETH withdrawal function, Kraken, a cryptocurrency exchange, has requested to withdraw over 556000 ETHs (worth $1 billion), accounting for 63.5% of the 860000 ETHs currently queued for withdrawal. Kraken previously announced that due to regulatory reasons, it will automatically begin to release all Ethereum pledges for its US customers. Previously, the Securities and Exchange Commission (SEC) accused Kraken of failing to register its pledge plan in the United States, and Kraken agreed to pay a fine of $30 million.

Kraken will release ETH pledges worth over $1 billion

Introduction

Kraken, a popular cryptocurrency exchange, has requested to withdraw over 556,000 ETHs (worth $1 billion) from the Shanghai-based cryptocurrency exchange after it upgraded its ETH withdrawal function. According to Nansen data, this makes up 63.5% of the 860,000 ETHs currently queued for withdrawal.

Background

Kraken previously announced that it will release all Ethereum pledges made by its US customers. This decision came after the Securities and Exchange Commission (SEC) accused Kraken of failing to register its pledge plan in the United States. As a result, Kraken agreed to pay a fine of $30 million.

The Impact of the Upgrade

The upgrade to the ETH withdrawal function in the Shanghai-based cryptocurrency exchange has brought about a significant change in the market. Kraken’s withdrawal request of over $1 billion worth of ETH has created a surge in the queue for withdrawal, with over 860,000 ETHs currently queued for withdrawal.

The Implications of Kraken’s Decision

Kraken’s decision to withdraw its Ethereum pledges and the subsequent surge in the queue for withdrawal on the Shanghai-based cryptocurrency exchange has raised concerns in the market. The market has responded with a dip in the value of Ethereum, which currently stands at $2,958.91.

The Future of Cryptocurrency Exchanges and Regulations

The recent events involving Kraken and the Shanghai-based cryptocurrency exchange have highlighted the need for better regulations in the cryptocurrency market. As cryptocurrencies continue to gain popularity, the importance of adhering to regulations cannot be overstated.

Conclusion

Kraken’s withdrawal request of over $1 billion worth of ETH has caused a significant stir in the cryptocurrency market, raising vital concerns regarding the necessity of proper regulations in the industry. The need for better regulations is more critical now than ever before.

FAQs

1. What is Kraken’s withdrawal plan for Ethereum pledgers in the US?
Kraken has announced that it will release all Ethereum pledges made by its US customers.
2. What is the current queue for ETH withdrawal on the Shanghai-based cryptocurrency exchange?
Currently, over 860,000 ETHs are queued for withdrawal on the Shanghai-based cryptocurrency exchange.
3. What was the fine imposed on Kraken by the US Securities and Exchange Commission?
Kraken agreed to pay a fine of $30 million for failing to register its pledge plan in the United States.