NYDFS to Beef Up Fraud Controls for Crypto Companies

The New York State Department of Financial Services (NYDFS) is persuading all virtual currency business entities to improve their protective measures against fraud
08 February 2018   366

On Wednesday NYDFS released Guidance on Prevention of Market Manipulation and Other Wrongful Activity.

In this guidance, The Department emphasizes that crypto companies are required to implement measures designed to effectively detect, prevent, and respond to fraud, attempted fraud, and similar wrongdoing.

According to the guidance, upon the discovery of any fraud, crypto companies must submit to the Department a report stating all pertinent details known at the time of the report.

The guidance also mandates that virtual currency entities take steps to investigate fraud and wrongdoing, and upon the completion of a given investigation, to issue a statement summarizing the actions taken to resolve any fraud and wrongdoing.

According to superintendent Maria Vullo, the Department is encouraging crypto companies to take the necessary steps to guard against fraud and to be ready for market manipulation. Due to these actions, the market can evolve with strong regulatory supervision.

Mt. Gox Trustee Can Sell 2000 BTC Soon

Possible sale of such a large batch can lead to a further fall of the bitcoin price
26 April 2018   167

Head of the Board of Trustees of MtGox, Nobuaki Kobayashi, is probably preparing to sell a new batch of bitcoins, this time at a rate of 2,000 BTC.

This assumption was made by the bitcoin-investor and the head of the Altana Digital Currency Fund, Alistair Milne. In support of his words, he brought to Twitter a link to the trustee's MtGox address.

Alistair Milne Twitter
Alistair Milne Twitter

Apparently, on the morning of Thursday, April 26, from the address indicated, 2,000 were transferred to another address. Some of the funds that were there before (8,000 BTC) were almost immediately expended.

Possible simultaneous sale of such a large batch can lead to a further drawdown of the bitcoin price.

Bitcoin Price Chart
Bitcoin Price Chart

Trading on Wednesday evening at around $ 9,000, on the night of Thursday, the first crypto currency continued the decline started yesterday, dropping at a certain point to $ 8,650. At the time of publication, however, there has been a slight increase - according to Coinmarketcap, the weighted average bitcoine rate at that time is $ 8 790.