New York Attorney General Eric T. Schneiderman has launched the "Virtual Markets Integrity Initiative", an "Inquiry into the policies and practices" of digital currency trading platforms, according to a press release April 17.
As part of the initiative, letters were sent to thirteen major cryptocurrency exchanges, requesting information on their operations, internal controls, and other key issues.
"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."
As part of an effort to protect cryptocurrency investors and users, and increase transparency in how virtual currency trading platforms operate, a three-page questionnaire was delivered to the exchanges.
The questionnaire asks the platforms to provide information such as their approach to fighting market manipulation, operation of bots, usage of non-public trading information, and protection of customer funds.
The action reportedly aims to bring average investors a better understanding of the risks and protections associated with cryptocurrency trading platforms.
"Often, the platforms lack the basic market protections of traditional investing platforms. Moreover, the extent of disclosures to customers about trading rules, internal controls, and other basic practices varies from platform-to-platform, making it difficult or impossible for prospective users to evaluate the actual risks of trading on a particular platform."
New York Attorney General's Office Launches Inquiry Into Cryptocurrency Trading Platforms
Published on Apr 17, 2018
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.