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> Kraken knows this. Clearly, because they won't attest to liabilities (IE, how much money do they owe in total), but "client liabilities" (IE, how much money
by karpierz 4y ago
> Kraken knows this.
Clearly, because they won't attest to liabilities (IE, how much money do they owe in total), but "client liabilities" (IE, how much money do they owe to their customers).
If they took out a loan for 100M, with their client's assets as collateral, that won't be covered by "client liabilities", but it sure as hell will be a problem when that loan gets called in.
- b3lvedere 4y agoLooks to me that is not so different from 'normal' banks
- polygamous_bat 4y agoExcept "normal" banks are regulated with a history of regulation going back for more than a century.
- zorked 4y agoAnd as we know this system has been working perfectly.
- matheusmoreira 4y agoRegulate crypto exchanges then. They're just banks in disguise.
- aNoob7000 4y agoWhy do you want crypto regulated? I thought the goal of crypto is to free you from regulation and government control. If crypto is regulated, your crypto can be seized, frozen, held, and so on.. Why regulate it?
- freejazz 4y agoThe state already has the power to seize, freeze, or hold crypto. That has nothing to do with regulation.
- prottog 4y agoYeah, but the Wild West nature of crypto is its selling point, maybe even its raison d'etre. What would be the point in regulated crypto? It won't do anything that the traditional banking system doesn't already do.
- freejazz 4y agoWell your basic assumption was already wrong, what else do you want me to tell you? That people don't personally care whether or not cyrpto's selling point remains viable? as if anyone should
- matheusmoreira 4y agoI want cryptocurrency exchanges regulated. Not cryptocurrencies themselves. They are distinct. Cryptocurrencies are perfectly good technology, exchanges are fractional reserve banks in disguise.
- vkou 4y agoNormal banks undergo regular audits, and get seized by the government when there's a wiff of insolvency about them.