Kraken scraps Monero withdrawal questionnaires after co-CEO calls them unacceptable

Cryptocurrency exchange Kraken has withdrawn intrusive compliance questionnaires sent to Monero (XMR) buyers after co-CEO Arjun Sethi admitted on October 24, 2026, that asking customers about post-withdrawal coin usage was unjustified and unrequired by regulation. The checks were triggered when internal staff flagged a wealthy young client, a profiling decision Sethi publicly rejected. While standard anti-money-laundering source-of-funds verification, regional trading bans, and a $1,500 30-day individual withdrawal cap remain active, Sethi confirmed Monero will stay listed on the exchange.

Withdrawal of Monero compliance questionnaires

• ▪Kraken co-CEO Arjun Sethi announced on October 24, 2026, that Kraken withdrew intrusive compliance questionnaires sent to Monero (XMR) buyers asking about their employers, sources of funds, and intended coin use
• ▪Arjun Sethi stated that no regulation required Kraken to request information about how customers intend to use Monero after withdrawing it from the exchange, calling such inquiries unacceptable
• ▪Arjun Sethi confirmed that Monero remains listed on Kraken, writing that customers can buy Monero on the exchange and withdraw it to private wallets

Internal flagging of young client

• ▪Arjun Sethi rejected an internal Kraken assessment that a customer's young age and large financial position constitute an automatic red flag
• ▪The intrusive Monero compliance emails sent by Kraken were triggered after a Kraken employee flagged a young client holding substantial wealth as a red-flag risk

Monero rolling transaction caps

• ▪Under Kraken's transaction rules introduced on August 15, 2026, Kraken limits Monero deposits and withdrawals over a rolling 30-day period to $3,500 and $1,500 for individual accounts, and $30,000 and $10,000 for corporate accounts
• ▪Kraken co-CEO Arjun Sethi did not address Kraken's $1,500 rolling 30-day Monero transaction caps when announcing the withdrawal of Kraken's Monero compliance questionnaires

Regional Monero restrictions

• ▪Kraken discontinued Monero trading and deposits for clients in the European Economic Area and the United Kingdom, citing regulatory changes
• ▪Users residing in Canada and Australia are prohibited from depositing, holding, or trading Monero on Kraken

Kraken general AML compliance policies

• ▪Kraken's compliance policy, amended on October 1, 2026, allows the exchange to restrict deposits or trading for non-compliant accounts, though withdrawals remain unaffected
• ▪Kraken maintains its policy of requiring bank statements and investment records to verify the origin of customer funds under anti-money-laundering obligations