https://www.cnbc.com/2021/04/12/bitcoin-kraken-ceo-jesse-powell-warns-of-cryptocurrency-crackdown.html Skip Navigation logo logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Environment * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Invest In You * Personal Finance * Fintech * Financial Advisors * Trading Nation * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * Venture Capital * Tech Guide Politics * White House * Policy * Defense * Congress * Finding Solutions CNBC TV * Live TV * Live Audio * Business Day Shows * The News with Shepard Smith * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist PRO * Pro News * Pro Live * Subscribe * Sign In Menu * Make It * USA * INTL Search quotes, news & videos SIGN IN logo Markets * Pre-Markets * U.S. Markets * Currencies * Cryptocurrency * Futures & Commodities * Bonds * Funds & ETFs Business * Economy * Finance * Health & Science * Media * Real Estate * Energy * Environment * Transportation * Industrials * Retail * Wealth * Life * Small Business Investing * Invest In You * Personal Finance * Fintech * Financial Advisors * Trading Nation * Options Action * ETF Street * Buffett Archive * Earnings * Trader Talk Tech * Cybersecurity * Enterprise * Internet * Media * Mobile * Social Media * Venture Capital * Tech Guide Politics * White House * Policy * Defense * Congress * Finding Solutions CNBC TV * Live TV * Live Audio * Business Day Shows * The News with Shepard Smith * Entertainment Shows * Full Episodes * Latest Video * Top Video * CEO Interviews * CNBC Documentaries * CNBC Podcasts * CNBC World * Digital Originals * Live TV Schedule Watchlist PRO * Pro News * Pro Live * Subscribe * Sign In Menu Tech CEO of a top bitcoin exchange warns a crackdown on cryptocurrencies may be coming Published Mon, Apr 12 202110:58 AM EDTUpdated Mon, Apr 12 20215:31 PM EDT Ryan Browne@Ryan_Browne_ ShareShare Article via FacebookShare Article via TwitterShare Article via LinkedInShare Article via Email Key Points * Jesse Powell, CEO of bitcoin exchange Kraken, said there "could be some crackdown" on cryptocurrencies. * U.S. Treasury Secretary Janet Yellen and other officials have warned about the use of cryptocurrencies for illicit transactions. * Cryptocurrencies have surged in value lately, with bitcoin hitting a record high price of more than $61,000 last month. Yuriko Nakao | Getty Images Governments around the world may start to clamp down on the use of bitcoin and other cryptocurrencies, the CEO of a top crypto exchange has warned. A number of officials -- from U.S. Treasury Secretary Janet Yellen to European Central Bank President Christine Lagarde -- have sounded the alarm about the use of bitcoin for money laundering, terrorist financing and other illegal activities. "I think there could be some crackdown," Jesse Powell, CEO of Kraken, told CNBC in an interview. Cryptocurrencies have surged in value lately, with bitcoin hitting a record high price of more than $61,000 last month. The world's most valuable digital coin was last trading Monday at around $60,105. VIDEO5:0805:08 Early Coinbase investor Reid Hoffman on the rise of crypto TechCheck Kraken is the world's fourth-largest digital currency exchange in terms of trading volume. The firm is considering going public through a direct listing -- similar to Coinbase -- next year after achieving record trading volumes in the first quarter, CNBC reported last week. Coinbase is set to go public on Wednesday, and could be valued at as much as $100 billion -- more than major trading venue operators like Intercontinental Exchange, owner of the New York Stock Exchange. Crypto investors are hailing the company's stock market debut as a major milestone for the industry after years of skepticism from Wall Street and regulators. Still, Kraken's chief thinks regulatory uncertainty around crypto isn't going away anytime soon. A recent anti-money laundering rule proposed by the U.S. government would require people who hold their crypto in a private digital wallet to undergo identity checks if they make transactions of $3,000 or more. "Something like that could really hurt crypto and kind of kill the original use case, which was to just make financial services accessible to everyone," Powell said. Cryptocurrencies like bitcoin have often been associated with illicit activities due to the fact that people transacting with it are pseudonymous -- you can see where funds are being sent but not who sent or received them. There are signs that the use of crypto for nefarious purposes may be falling. Illicit activity accounted for just 0.34% of all crypto transaction volume last year, according to blockchain analysis firm Chainalysis. That was down from roughly 2% a year earlier. VIDEO4:3304:33 Anthony Pompliano on Peter Thiel's warning about Chinese weaponizing bitcoin Squawk Box "I hope that the U.S. and international regulators don't take too much of a narrow view on this," Powell said. "Some other countries, China especially, are taking crypto very seriously and taking a very long-term view." Kraken's CEO said he feels the U.S. is more "shortsighted" than other nations and "susceptible" to the pressures of incumbent legacy businesses -- in other words, the banks -- that "stand to lose from crypto becoming a big deal." "I also think it might be too late," Powell added. "Maybe the genie's out of the bottle and just trying to ban it at this point would make it more attractive. It would certainly send a message that the government sees this as a superior alternative to their own currency." The U.S. isn't the only country considering strict new rules on crypto. In India, for example, the government is considering a law that would ban cryptocurrencies and penalize anyone holding or trading them. logo * Subscribe to CNBC PRO * Licensing & Reprints * CNBC Councils * Supply Chain Values * CNBC on Peacock * Advertise With Us * Join the CNBC Panel * Digital Products * News Releases * Closed Captioning * Corrections * About CNBC * Internships * Site Map * Podcasts * Ad Choices * Careers * Help * Contact * * * * * * * News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and services. Privacy Policy|Do Not Sell My Personal Information|CA Notice|Terms of Service (c) 2021 CNBC LLC. All Rights Reserved. A Division of NBCUniversal Data is a real-time snapshot *Data is delayed at least 15 minutes. 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