New York Attorney General Eric Schneiderman Launches Inquiry into crypto
The Attorney General of New York is taking a closer look at some of the world’s most famous cryptocurrency exchange services.
On Tuesday, Attorney General Eric Schneiderman declared the “Virtual Markets Integrity Initiative” stating it was “a fact-finding probe into the policies and operations” of digital asset trading platforms. According to a press release published on Tuesday, thirteen exchanges got letters, asking for information about their “services, use of bots, conflicts of interests, outages, and other important issues.”
Schneiderman was cited as saying: “With cryptocurrency on the rise, users in New York and all over the country have a right to clarity and accountability when they put their funds into an investment. Users don’t often have the essential facts they need to evaluate the honesty, security, and fairness of these trading platforms.”
Companies that operate GDAX, Bitfinex, Bitstamp, Bittrex, Kraken, Gemini, bitFlyer, Binance, itBit, Gate.io, HuobiPro, Tidex, and Poloniex, which was recently acquired by Circle, all received a letter each.
The inquiry, according to Schneiderman is focused on critical issues like “internal controls and safeguards in place to protect client assets.”
Schneiderman’s office stated that the effort would, in part, investigate the cryptocurrency exchange services that explicitly do not operate in the state of New York as a result regulatory concerns.
The announcement stated: “We are aware that some trading platforms have precise rules prohibiting access in New York and may not have a license to conduct cryptocurrency business activity in New York. Among other topics, we are asking platforms to explain their measures for barring trading from prohibited jurisdictions.”