New York State Attorney General Eric Schneiderman sent inquiries to the largest cryptocurrency exchanges demanding disclosure of information about the activities of these companies, urging them to greater transparency and accountability to clients. This is reported in a press release on the Prosecutor General's website.
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.
Attorney General, New York State
The following trading platforms were included in the mailing list: Coinbase, Inc. (GDAX); Gemini, bitFlyer USA, Inc., iFinex Inc. (Bitfinex), Bitstamp USA Inc., Payward, Inc. (Kraken), Bittrex, Inc., Circle Internet Financial Limited (Poloniex LLC), Binance Limited, Elite Way Developments LLP (Tidex.com), Gate Technology Incorporated (Gate.io), itBit Trust Company and Huobi Global Limited (Huobi. Pro).
Not later than May 1 of this year, the aforementioned trading floors will have to answer questions concerning:
- Ownership and Control,
- Basic Operation and Fees,
- Trading Policies and Procedures,
- Outages and Other Suspensions of Trading,
- Internal Controls,
- Privacy and Money Laundering
Also, platforms will need to describe their approaches to counteracting market manipulation, disclose policies regarding trade robots, as well as information on measures to protect against theft, fraud and other risks.