The Attorney General of New York, Eric Schneiderman has launched an official probe into cryptocurrency practices in the state. In a press statement released on Tuesday, the AG’s office said that sent out letters to 13 crypto exchanges requesting information about their operations. This is part of the inquiry it tagged
The letters which were made public contained a 34-point questionnaire covering the ownership and control of the exchanges; basic operation and fees; trading policies and procedures; outages and suspensions; internal controls; privacy and money laundering; investor protection; and documentation. In a theme of transparency, the statement noted that the results of the inquiry will be made public.
The AG wants to protect investors by making the operations of these cryptocurrency trading platforms more transparent. The statement read in part:
[perfectpullquote align="full" bordertop="false" cite="" link="" color="" class="" size=""]“With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms.”[/perfectpullquote]
The recipients of the letter sent the Investor Protection Bureau of the AG’s office include the following exchanges: Coinbase, Inc. (GDAX); Gemini Trust Company; Bitstamp USA Inc.; bitFlyer USA, Inc.; iFinex Inc. (Bitfinex); Payward, Inc. (Kraken); Bittrex, Inc.; Circle Internet Financial Limited (Poloniex LLC); Binance Limited; Gate Technology Incorporated (Gate.io); Elite Way Developments LLP (Tidex.com); itBit Trust Company; and Huobi Global Limited (Huobi.Pro).
Response from Cryptocurrency Exchanges
Bloomberg reports that iBit, Bittrex and BitFlyer have all reacted to the AG’s request. The CEO of iBit, Charles Cascarilla agreed with Schneiderman’s intention of protecting users of the various platforms. "Our regulation is a lot like any other bank," he said referring to iBit’s operations which he says offers transparent prices for users. Bittrex and BitFlyer in separate statements promised to work with the Attorney General to improve transparency.
The exchanges are expected to respond by the end of the month.
Posted from my blog with SteemPress : https://smartereum.com/9712/new-york-to-probe-cryptocurrency-exchanges-hammers-on-transparency/