13 Crypto Exchanges Get Special Questionnaire from NY Attorney General By Cryptovest

13 Crypto Exchanges Get Special Questionnaire from NY Attorney General

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    <p>New York State, the monetary hub of the United States, has to date been a relatively relaxed place to begin a mission revolving round cryptocurrencies. However, New York Attorney General Eric Schneiderman has been involved about the best way cryptocurrency exchanges function, which prompted him <a href="https://ag.ny.gov/press-release/ag-schneiderman-launches-inquiry-cryptocurrency-exchanges" target="_blank">to launch</a> on Tuesday the Virtual Markets Integrity Initiative (VMII).</p>

The VMII is an easy fact-finding mission that goals to peek into how the platforms crypto merchants use function, with a powerful emphasis on studying about their buyer safety and transparency insurance policies.

The AG’s workplace despatched letters to 13 such exchanges, every containing a questionnaire that begins out by asking for fundamental details about the corporate.

“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. Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve,” Schneiderman mentioned.

The questionnaire covers some matters in depth, together with issues associated to inside controls and cash laundering.

For instance, exchanges are required to “identify all categories of personally identifiable information and proof of identity” that they make clients present in an effort to achieve entry to their platforms.

Exchanges have additionally been requested to submit copies of their purposes for charters or a “BitLicense” that enables them to commerce cryptocurrencies.

Among the businesses which have obtained these letters are Gemini Trust, iBit, Coinbase GDAX, and BitFlyer.

About a month in the past, New York moved to discourage native crypto miner by introducing higher electricity rates for them and stop a spike in costs for households and current industrial enterprises.

However, it doesn't really feel as if the state intends to combat its exchanges. These letters seem like a easy probe to find out whether or not operators would want further regulatory measures to make sure transparency for his or her customers.

This article appeared first on Cryptovest

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