Kraken is one of the most popular and successful cryptocurrency exchanges in the world, and it has been gaining traction in America for years. However, there is one place where Kraken is not allowed to operate–New York.

There are several reasons why Kraken is not allowed in New York, and it all boils down to the New York State Department of Financial Services (DFS).

The DFS is very strict when it comes to cryptocurrency regulations, and they have set up a system that is designed to protect investors, consumers, and other financial institutions.

As such, the DFS has denied Kraken's application to operate in New York due to their stringent regulations.

So, why is Kraken not allowed in New York? The primary reason why Kraken is not allowed in New York is due to the BitLicense requirements set forth by the DFS.

This licensing requirement was created in 2015, and it is designed to ensure that all cryptocurrency exchanges in New York are well-regulated and compliant with DFS regulations.

In order to obtain a BitLicense, Kraken would have to submit a detailed application to the DFS, which would then be reviewed and approved or denied.

Unfortunately, the process is tedious and expensive, so Kraken decided to forego the process and not operate in New York.

Another reason why Kraken is not allowed in New York is due to the fact that the DFS has banned certain types of transactions from taking place on the platform.

These types of transactions include margin trading, which is a type of trading that allows traders to borrow money from the exchange and trade on margin.

This type of trading can be risky, and the DFS has determined that it is not suitable for investors in New York. As such, Kraken has been prohibited from offering margin trading in the state.

Lastly, Kraken is not allowed in New York due to its lack of compliance with the DFS when it comes to anti-money laundering (AML) and know-your-customer (KYC) regulations.

The DFS requires all cryptocurrency exchanges to adhere to AML and KYC regulations, which Kraken has not been able to comply with.

As a result, Kraken is not allowed to operate in New York, even though it is one of the most popular and successful exchanges in the world.

This is due to the DFS's strict regulations and its desire to protect investors, consumers, and other financial institutions.

Although this might seem unfair to some, it is important to remember that these regulations are in place to protect the public from fraud and manipulation.

It is also important to note that Kraken is allowed to operate in other states, so those who are interested in trading cryptocurrencies can still do so.

Overall, the DFS's strict regulations have kept Kraken from operating in New York, and this is unlikely to change in the near future.

For those interested in trading cryptocurrencies, they should look to another state that offers a more favorable regulatory environment.