Kraken CEO: Crypto Exchange Won't Answer New York AG's Inquiry

San Francisco-based cryptocurrency exchange Kraken isn't planning to respond to the New York Attorney General's newly unveiled inquiry into the ecosystem.

Kraken was one of 13 exchanges that received a letter from New York Attorney General Eric Schneiderman on Tuesday as part of his new inquiry into cryptocurrency exchanges, as previously reported. While most exchanges generally welcomed the inquiry and said they would fill out the attached questionnaire, Kraken took a different tack when reached for comment. Powell made it clear that Kraken does not intend to answer the questionnaire, saying:

"I realized that we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet."

Kraken announced that it would leave the state in 2015 due to the BitLicense, New York's cryptocurrency regulatory framework. In a blog post at the time, the exchange called the law "a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth."

Powell wrote Wednesday that Kraken is generally happy to engage with government bodies but criticized the AG's approach. While Kraken is not alone in having left New York due to the BitLicense, some state authorities continue to praise the regulations.

Yet lawmakers in the state are looking at the question of revising the framework - or doing away with it entirely. Indeed, during a roundtable discussion in February, industry stakeholders blasted the BitLicense, prompting a pledge from the state senators that hosted it to look at how it may be reworked in light of those concerns.

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