Binance, Bitfinex and More: New York Launches 'Inquiry' Into 13 Crypto Exchanges
New York's attorney general is taking a closer look at some of the world's most popular cryptocurrency exchanges.
Attorney broad Eric Schneiderman announced the "Virtual Markets Integrity Initiative" on Tuesday, motto it was "a fact-finding post-mortem into the policies and practices" of cryptocurrency trading platforms. inscription were sent to 13 exchanges, in search of in sequence about their "operations, avail yourself of of bots, conflicts of interests, outages, and other basic issues," according to a press release published on Tuesday.
"With cryptocurrency on the rise, patrons in New York and across the country hold a upright to lucidity and answerability once they invest their money. nonetheless moreover often, customers don't arrange the indispensable details they must to assess the fairness, integrity, and guarantee of these trading platforms," Schneiderman was quoted as saying.
Letters were sent to the companies that operate GDAX, Gemini, bitFlyer, Binance, itBit, Gate.io, Huobi.Pro, Bitfinex, Bitstamp, Bittrex, Kraken, Tidex and Poloniex (the latter of which was recently acquired by Circle).
According to Schneiderman, the inquiry is also focused on key issues such as "internal controls and safeguards to protect consumer assets." In statements, Schneiderman's office said that the effort would also focus in part on the exchanges that explicitly do not operate in New York because of regulatory concerns.
"We are aware that certain trading platforms have formal rules barring access in New York and may not have a license to engage in virtual currency business activity in New York. Among other topics, we are asking platforms to describe their measures for restricting trading from prohibited jurisdictions," the announcement stated.
