New York Attorney General Eric Schneiderman on Tuesday announced the launch of an inquiry into cryptocurrency exchanges.
The Virtual Markets Integrity Initiative will look into the policies and practices of digital currency exchanges. The Attorney General’s office has already sent letters to thirteen major cryptocurrency trading platforms requesting key information on their operations, internal controls, and safeguards to protect customer assets.
These exchanges include Coinbase (GDAX), Gemini Trust Company, bitFlyer USA, iFinex (Bitfinex), Bitstamp USA, Payward (Kraken), Bittrex, Circle Internet Financial Limited (Poloniex), Binance Limited, Elite Way Developments (Tidex.com), Gate Technology Incorporated (Gate.io), itBit Trust Company, and Huobi Global Limited (Huobi.Pro).
“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,” said Attorney General Schneiderman. “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.”
According to the official release, the questionnaires sent to crypto exchanges ask them to disclose information falling within six major topic areas, including (1) Ownership and Control, (2) Basic Operation and Fees, (3) Trading Policies and Procedures, (4) Outages and Other Suspensions of Trading, (5) Internal Controls, and (6) Privacy and Money Laundering.
