New York attorney general launches cryptocurrency ‘exchanges’ inquiry
20 April 2018 New York
Image: Shutterstock
New York Attorney General Eric Schneiderman has launched a fact-finding inquiry into the policies and practices of major US and non-US cryptocurrency platforms named the 'Virtual Markets Integrity Initiative'.
As part of the initiative, the New York State Office of the Attorney General has sent a letter and questionnaire to 13 exchanges specialising in cryptocurrencies.
The questionnaires inquire about six major topic areas, including ownership and control, basic operation and fees, trading policies and procedures, outages and other suspensions of trading, internal controls and privacy and money laundering.
Among other areas of interest, the recipients are asked to describe their approach to combating suspicious trading and market manipulation, their policies on the operation of bots, their limitations on the use of and access to non-public trading information, and the safeguards they have in place to protect customer funds from theft, fraud, and other risks.
Attorney general Schneiderman said: “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.”
Early market reaction comes from Mati Greenspan, senior market analyst at social trading platform eToro.
He added: “The Attorney General is looking for general information about crypto exchanges. This isn't necessarily good news or bad news for crypto. It just means the government is doing some more homework.”
As part of the initiative, the New York State Office of the Attorney General has sent a letter and questionnaire to 13 exchanges specialising in cryptocurrencies.
The questionnaires inquire about six major topic areas, including ownership and control, basic operation and fees, trading policies and procedures, outages and other suspensions of trading, internal controls and privacy and money laundering.
Among other areas of interest, the recipients are asked to describe their approach to combating suspicious trading and market manipulation, their policies on the operation of bots, their limitations on the use of and access to non-public trading information, and the safeguards they have in place to protect customer funds from theft, fraud, and other risks.
Attorney general Schneiderman said: “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.”
Early market reaction comes from Mati Greenspan, senior market analyst at social trading platform eToro.
He added: “The Attorney General is looking for general information about crypto exchanges. This isn't necessarily good news or bad news for crypto. It just means the government is doing some more homework.”
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