• Mon, 27 May 2019, 10:17 AM
  • All times are UTC
  • Edition:
    International
Link copied

New York Attorney General highlights vulnerabilities of crypto platforms in new report

NY Attorney General Barbara D. Underwood (Image: Mike Groll/AP)

Wed, 19 Sep 2018, 08:33 am UTC

The New York Office of the Attorney General (OAG) this week published a report on the results of the Virtual Markets Integrity Initiative launched in April 2018.

In April 2018, the Attorney General’s office sent letters to 13 major crypto trading platforms requesting key information on their operations, internal controls, and safeguards to protect customer assets. Nine of these platforms – Bitfinex, bitFlyer USA, Bitstamp, Bittrex, Coinbase, Gemini Trust Company, itBit, Poloniex, and Tidex – participated in the initiative.

The OAG separately invited HBUS to respond, as the platform opened for trading in July 2018. HBUS also took part in the initiative.

Four platforms – Binance, Gate.io, Huobi Global Limited, and Kraken – declined to participate, saying that they do not allow trading from New York. The Attorney General’s office particularly highlighted Kraken’s public response on the matter, calling it “alarming”:

“In announcing the company’s decision not to participate in the Initiative, Kraken declared that market manipulation “doesn’t matter to most crypto traders,” even while admitting that “scams are rampant” in the industry.”

In its report, the OAG said that it has found many platforms vulnerable to abusive trading, conflicts of interest, and other consumer risks.

“New Yorkers deserve basic transparency and accountability when they invest – whether on the New York Stock Exchange or on a cryptocurrency platform. Yet, as our report details, many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity, and security of their exchanges,” said Attorney General Barbara D. Underwood.

“With this report, we hope to give New Yorkers the tools they need to make educated decisions on whether to entrust their money to a cryptocurrency platform and to help protect themselves against theft, fraud, and abuse.”


According to the official release, the Attorney General's office has referred three platforms – Binance, Gate.io, and Kraken – to the New York State Department of Financial Services (NYDFS) for possibly operating unlawfully in New York.

<Copyright © TokenPost. All Rights Reserved. >

The commenting service is available only after having logged in.
More
  • Bitcoin (BTC) $8,713.38 (+9.00%)
  • Ethereum (ETH) $267.41 (+7.13%)
  • XRP (XRP) $0.409200 (+6.83%)
  • Bitcoin Cash (BCH) $432.74 (+8.00%)
  • Litecoin (LTC) $113.49 (+11.83%)
  • Bitcoin (BTC) $8,713.38 (+9.00%)
May 27, 2019 (Monday)
10:15
bitFlyer Holdings establishes new blockchain subsidiary in Japan
09:11
More Indian telecom giants including Vodafone Idea, Jio to deploy blockchain-based anti-spam call tech
08:53
Recruit invests in next-gen blockchain startup COTI
07:44
Crypto exchange Bittrex teams up with IdentityMind for automated transaction monitoring
07:05
Rabobank ditches plan to launch cryptocurrency wallet 'Rabobit'
06:53
Deloitte Canada selects LiteLink as blockchain delivery group
06:09
Crypto trading app Robinhood gears up to raise $200M: Report
06:04
Saudi Customs departs first blockchain-powered shipment to Rotterdam
05:16
US State of Montana is now crypto friendly, recognizes utility tokens
04:20
Facebook’s Zuckerberg reaches out to Winklevoss twins for crypto project: Report
03:46
Blockchain capital markets platform iSTOX joins Singapore's sandbox
03:33
Luxury watchmaker Vacheron Constantin to use blockchain technology to authenticate timepieces
03:23
Swisscom TV to showcase blockchain-based artwork
May 24, 2019 (Friday)
12:18
Crypto Technicals: ETH/USD retraces above 1H 200-SMA, 'Hammer' on daily charts signals further gains
10:50
German engineering giant Bosch trials Ethereum blockchain
10:39
Crypto Technicals: BTG/USD grinds higher along 21-EMA, breakout at 61.8% Fib (25.74) will accentuate gains
09:33
Bank of Russia to review proposal on gold-backed cryptocurrency
09:17
Blockchain software firm Unstoppable Domains raises $4M from Draper Associates, Boost VC
08:45
Crypto Technicals: LTC/USD bounces off 21-EMA support, next bull target $109
08:45
Robinhood Crypto is now in New York
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft