Maine Bureau of Consumer Credit Protection Announces Consent Agreement and Order with Kraken
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Maine Bureau of Consumer Credit Protection Announces Consent Agreement and Order with Kraken
December 23, 2024
Professional & Financial Regulation - Consumer Credit Regulation
Augusta, MAINE - On December 13th, 2024, the State of Maine, Bureau of Consumer Credit Protection ("Bureau") entered into a consent agreement and order with Payward Ventures, Inc., Payward Financial, Inc., Payward Guardian, LLC, and TradeStation Crypto, Inc. (a/k/a Payward Interactive, Inc.) d/b/a Kraken, hereinafter referred to as Kraken, to settle matters connected to Kraken's applications to legally conduct money transmission in the State of Maine. The Bureau is the regulatory agency responsible for the administration and enforcement of the Maine Money Transmission Modernization Act, which became effective in 2024 offering enhanced protections to Maine consumers who use money transmission services. Kraken has corporate and company locations in San Francisco, California, Cheyenne, Wyoming and Plantation, Florida.
On December 13, 2022, and March 9, 2023, Kraken applied for licenses with the Bureau to operate in Maine to legally conduct the business of money transmission. On April 11, 2024, the Bureau ordered a denial of Krakens money transmitter applications and denied a change of [license] control application connected to TradeStation Crypto, Inc. (see Bureau Case No. 2024-003, Denial of Application for Money Transmitter Licensure and Change of Control). Among other things, the Bureaus denial order stated that Kraken engaged in prior activities in Maine without a license for several years. Kraken denies the Bureaus allegations.
The December 13, 2024, Consent Agreement and Order between Kraken and the Bureau fully and finally resolves all matters contained in the Bureaus April 11, 2024, order resulting in the Bureaus acceptance of Krakens withdrawal of its license applications and its change of license control submissions. In addition, Kraken has agreed to suspend its money transmission activities in Maine except as necessary to permit users to move their assets out of Krakens platform.
As a matter of standard practice, the Bureaus role is to protect consumers by preventing unlicensed activity, said Linda Conti, Superintendent of the Bureau of Consumer Credit Protection, in addition, the Bureau is tasked to ensure that the public is served by money transmitters doing business in a manner commanding confidence and trust.
Persons who have questions about the consent agreement may contact the Bureau at 800-332-8529 or 207-624-8527 Hearing Impaired: Maine Relay 711. Members of the public can also visit https://www.NMLSConsumerAccess.org (Trusted Partner Link) to verify that a company is licensed to do business in Maine and view past enforcement actions before transacting business.
Contacts:
Linda Conti, Superintendent: linda.conti@maine.gov
Edward Myslik, Principal Examiner: edward.myslik@maine.gov
(207) 624-8527
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