The New York Attorney General Eric Schneiderman has launched a probe into 13 crypto exchanges that include big names like Coinbase, Binance, Bittrex, Gemini among others. In order to improve the transparency, the office is asking for information related to their daily trade activities.
New York attorney general office’s virtual markets integrity initiative
Crypto exchanges are experiencing a lot of regulatory strictness all around the world. The latest step is taken by the Attorney General Office of the New York as part of its effort to curb down the money laundering activities related to cryptocurrency and to protect the customer interests.
The Attorney General, Eric Schneiderman announced of an initiative called Virtual Markets Integrity Initiative which is a state-level effort to inspect the practices and policies of the major crypto exchanges in order to maintain more transparency and make the process of cryptocurrency trading and selling more streamlined.
A letter has been sent to a total of 13 crypto exchanges requesting them to provide the information on a number of matters including operations, outages, conflicts of interests, use of bots among other issues. However, Schneiderman emphasizes it to be just a “fact-finding inquiry” instead of an investigation.
Schneiderman states in the Press Release:
“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.”
He further talked about his initiative:
“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.”
Binance, Coinbase, Gemini & 10 other crypto exchanges are being probed
When it comes to defending the consumer rights in New York, the office of Schneiderman has always been early to step up. So, it’s no surprise that once again the office has come forward to conduct a cryptocurrency inquiry.
A standard questionnaire has been addressed to some of the biggest exchanges. The list of these 13 exchanges include Coinbase, Binance Ltd., Gemini Trust Company, iFinex Inc. (Bitfinex), Payward Inc. (Kraken), Bittrex Inc., Huobi Global Limited (Huobi.Pro), bitFlyer, Circle Internet Financial Limited (Poloniex LLC), Bitstamp USA, itBit Trust Company, Gate Technology Incorporated (Gate.io), and Elite Way Developments LLP (Tidex.com).
The questionnaire has eight major categories that seek basic information about company’s operations, ownership, the breakdown of fees, and anti-money laundering precautions.
The purpose of this fact-finding mission is to look into matters that have the potential for abrupt trade outages and market manipulation among other issues.
This inquiry by the New York might be seen as a threat by some while other exchanges are taking it in stride as this effort for increased transparency can help in a more thoughtful regulatory approach than a tighter one.
Do you think this examination by New York Attorney office can be a good thing for the crypto market?