Kraken is making changes to its margin trading offerings for U.S. customers in response to regulatory guidance on leveraged trading.
Starting June 23, Kraken clients based in the U.S. will no longer be able to access margin trading. However, some clients may be permitted continued access depending on certain requirements. Kraken said in a blog post on Wednesday that more information will be communicated on those standards.
Clients outside the U.S. will not be affected.
But after the June 23 date, those stateside who do not meet those standards will only be able to reduce their margin exposure and any open positions will expire 28 days from the day they were opened.
Kraken did not indicate which agency's guidance led it to close margin trading for many U.S. clients, but those stateside can possibly look to the CFTC guidelines for the reasoning behind the change. The commodities regulator released guidance in March of last year on "actual delivery" of digital assets. In response, Coinbase shuttered its margin program months later in November.
Though it did not specify which regulations led to the change, nor its stance on the guidance, Kraken said it would continue to advocate for fair regulation in the space.
"We believe in common-sense regulations that protect market participants and do not restrict their freedom to purchase, sell, hold and use cryptocurrency," said the announcement. "We will continue to advocate for that freedom."