Kraken CEO: Don’t hodl coins on centralized exchanges

Many experts always advise that if you want to be the true owner of virtual currencies, keep them in cold storage and keep your own private keys. However, many people continue to hold coins on centralized exchanges. This can definitely affect crypto users in the future.

In fact, CEO Jess Powell of Kraken, one of the most popular exchanges in the world, has advised users to keep their coins off-exchange.

This is just one of many crypto experts who suggest users should keep their coins in cold storage.

Do not store coins on centralized exchanges

If you don’t want to worry about your accounts freezing and funds getting stuck in exchanges, you need to get them out of these platforms and keep them in a wallet where you are allowed to keep your private keys. This is the best way to protect cryptocurrencies when the government requires exchanges to freeze assets.

These comments come as Deputy Prime Minister of Canada Chrystia Freeland stated that the crypto accounts reported by the RCMP have been frozen. In addition, she confirmed that many accounts will be frozen in the future. As Cointelegraph reported, the protests in Canada prompted the government to take many extreme measures against citizens, including freezing protesters’ bank accounts and cryptocurrency.

Over the years, exchanges have introduced identity verification (KYC) and anti-money laundering (AML) policies, which are required by centralized regulators and governments. This has prompted investors to share a large amount of information with the cryptocurrency platform, from addresses, first and last names to ID photos.

Jesse Powell said on Twitter that if someone disagrees with the government, the government simply confiscates their property or revokes their license. Furthermore, he mentioned that their exclusion from the financial system is also one of the ways for governments to punish those who disagree with them.

One crypto user has said that even without a court order, Kraken could be cornered to freeze assets in the future. Jesse Powell replied that it would happen and they were forced to comply.

Jess Powell said:

“There is 100 percent certainty that it has/will happen and 100 percent certainty that we will be forced to comply with her request. If you’re concerned about this, don’t keep your money on exchanges or depositories. We won’t be able to protect you. Please withdraw coins/cash and trade P2P only.”

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