Investor Concerns Regarding CFG Delisting on Kraken Germany

Dear Centrifuge Team,

As an investor in Centrifuge, I am writing to express my concerns regarding the recent announcement by Kraken Germany to declare CFG as an unsupported asset starting from July 10, 2024. This decision has raised several questions and uncertainties and I believe it is crucial for the Centrifuge team to address these issues comprehensively.

Understanding the Situation

The announcement from Kraken Germany states that verified clients will face BaFin-regulated counterparties (DLT Securities GmbH and DLT Custody GmbH) for crypto services and a Central Bank of Ireland (CBI)-regulated counterparty (Payward Ireland Limited) for fiat services (bank deposits and withdrawals). Additionally, it was mentioned that this change will only affect Germany. However, the rationale behind CFG being declared unsupported and the specific regulatory reasons remain unclear.

Potential Reasons for Delisting

One potential reason for this delisting could be the upcoming implementation of the Markets in Crypto-assets Regulation (MiCAR), which aims to establish a unified regulatory framework for cryptocurrencies across the European Union. If Kraken Germany is aligning its operations with these new regulations, it raises concerns about whether other Kraken platforms in Europe and other exchanges might follow suit, leading to a broader delisting of CFG.

Investor Concerns

As an investor, I am deeply concerned about the following points:

  1. Clarification on Delisting: Why has Kraken Germany decided to declare CFG as unsupported? Is this directly related to MiCAR, or are there other regulatory or business considerations at play?
  2. Future of CFG on Other Platforms: Should we expect similar actions from other Kraken platforms in Europe or other exchanges due to regulatory changes? What is the Centrifuge team doing to prevent this?
  3. Impact on Investments: How will this delisting affect the value and liquidity of CFG? What steps are being taken to mitigate any potential negative impact on investors?

Request for a Detailed Explanation

Given the seriousness of the situation, I urge the Centrifuge team to provide a detailed explanation addressing the above concerns. Transparency and communication are vital in maintaining investor confidence, especially during times of regulatory uncertainty.

I appreciate the brief response provided on Discord, indicating that the team is aware of the issue and in touch with Kraken. However, more comprehensive information is necessary to understand the full scope of the situation and the actions being taken to protect CFG investors.

Thank you for your prompt attention to this matter. I look forward to a detailed response that will help reassure the Centrifuge community and provide clarity on the way forward.

Best regards,

I am not aware of the exact issue but there can be several reasons for Delisting in general so before people coming up with their option than the real reason.

On other side EU is much better place with respect to regulation and MiCA in comparison to US markets and with a good compliance team this would be a doable job if it is related MiCA and I hope this is only a temporary delisting for Kraken.