CryptoSlate
Kraken has withdrawn the intrusive compliance questionnaires it sent to Monero customers after co-CEO Arjun Sethi admitted that no regulation required the requests, which probed customers' employers, sources of funds, and intended use of their XMR. The climbdown does not touch the exchange's transaction limits, though: individuals remain capped at $1,500 in XMR withdrawals and $3,500 in deposits over any rolling 30-day period, with corporate accounts facing $30,000 and $10,000 thresholds respectively.
Why it matters
Sethi drew a line between verifying where a customer's money came from and asking what they do with it once it leaves the exchange. "Where your money came from is a fair question. What you do with it after it leaves is not," he said, calling the latter inquiry unacceptable and confirming it will be removed from Kraken's compliance procedures. He also rejected the internal decision to flag a young customer holding substantial funds: "Someone saw a young client with a lot of money and called it a red flag. That is not a red flag. That is our customer and client."
The admission puts a spotlight on how exchanges apply internal controls to privacy-focused assets when those measures exceed explicit regulatory requirements. Kraken's standing source-of-funds policy, which can demand bank statements and investment records, remains in force under its anti-money-laundering obligations.
Market impact
Monero's privacy-preserving technology obscures transaction amounts and addresses, making its blockchain far harder to monitor than transparent networks like Bitcoin, which is precisely why the caps sting. Even with the questionnaires gone, the $1,500 rolling limit throttles how quickly customers can move holdings into private wallets, and Sethi did not address it. Kraken's EEA restrictions also stand: XMR trading and deposits were discontinued for the region on Oct. 31, 2024, with remaining balances auto-converted into BTC after Dec. 31, 2024.
Sethi nonetheless reaffirmed the listing. "XMR stays listed. Buy it here, take it home. That is the product." For Monero holders outside restricted regions, that is a material, if qualified, win.
Frequently asked questions
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Did Kraken remove its Monero withdrawal cap along with the questionnaires?
No. The $1,500 rolling 30-day withdrawal cap for individuals and the $3,500 deposit cap remain in place, with corporate accounts facing $30,000 deposit and $10,000 withdrawal thresholds over the same period.
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What did Kraken's co-CEO say about the Monero questionnaires?
Arjun Sethi said no regulation required the disputed requests, drawing a line between origin-of-funds checks and post-withdrawal spending questions: "Where your money came from is a fair question. What you do with it after it leaves is not."
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Can customers still trade Monero on Kraken?
Yes. Sethi reaffirmed the listing with "XMR stays listed. Buy it here, take it home. That is the product," although EEA trading and deposit restrictions introduced on Oct. 31, 2024 remain in effect.
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Why is Monero treated differently from Bitcoin on Kraken?
Monero's privacy-preserving technology obscures transaction amounts and addresses, making its blockchain more difficult to monitor than transparent networks like Bitcoin. Kraken says its caps are risk-based compliance controls that let it keep supporting XMR.
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What happens if a Kraken customer ignores a compliance information request?
Customers who fail to comply with legitimate requests may face restrictions on deposits or trading while Kraken reviews their accounts, though the exchange says those restrictions do not affect withdrawals.
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