New York Attorney General Sends Inquiry to 13 Cryptocurrency Exchanges

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New York Attorney General Eric Schneiderman is looking into the business practices of 13 major cryptocurrency exchanges.

On Tuesday, the Attorney General announced the “Virtual Markets Integrity Initiative” claiming that its goal is to look further into the practices and policies of cryptocurrency exchanges. According to a press release published on Tuesday, the letter requested information regarding general operations, privacy concerns, and bot usage, among a few other topics.  

The letter was sent to the following exchanges, some of which are not based in the US, but all of which allow customers from New York to use their platforms: GDAX, Gemini, bitFlyer, Binance, itBit, Gate.io, Huobi.Pro, Bitfinex, Bitstamp, Bittrex, Kraken, Tidex and Poloniex.

Schneiderman said:

“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.” 

The letters to the exchanges came with a detailed questionnaire that asks in depth questions regarding the exchanges business operations.  Several of the exchanges have commented on the inquiry.

Gemini’s CEO and co-founder Tyler Winklevoss seemed pleased with the inquiry, saying that he “applauds” the Attorney General’s actions and is looking forward to submitting the questionnaire.

Bitfinex released a statement saying, “We can confirm that Bitfinex is aware of the New York Attorney General's inquiry regarding our operations, controls, and general user protections. Bitfinex is committed to compliance with authorities and regulators worldwide and we look forward to responding to this inquiry.”

BitFlyer USA released a statement saying, “Transparency is important for consumer protection in this industry. We received the letter from the New York Attorney General and are reviewing the requests asked of our US exchange.”

A representative from Bittrex released a statement saying, “We look forward to working with NY Attorney General Schneiderman on our shared goal of improving transparency, accountability and security across all virtual currency trading platforms.”

It is not clear yet what the results of this inquiry will be, or whether the Attorney General plans on taking legal actions against any of the exchanges.