New York Wants Crypto Exchanges To Be More Transparent; Winklevoss says he’ll comply

New York Wants Crypto Exchanges To Be More Transparent; Winklevoss says he’ll comply

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April 18, 2018 by Bitzamp
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New York Wants Crypto Exchanges To Be More Transparent; Winklevoss says he’ll comply The New York State Attorney General’s Office has asked for information on 13 cryptocurrency exchanges in an effort to better understand investor risk, a statement said. The office of General Eric Schneiderman sent a letter to Coinbase, Gemini, Bit Trust and other
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New York Wants Crypto Exchanges To Be More Transparent; Winklevoss says he’ll comply
The New York State Attorney General’s Office has asked for information on 13 cryptocurrency exchanges in an effort to better understand investor risk, a statement said.

The office of General Eric Schneiderman sent a letter to Coinbase, Gemini, Bit Trust and other exchanges, requesting more information for investors and traders in this emerging market.

“Representing a technological advance, a medium of exchange, and an investment opportunity all at once, virtual currencies are inspiring innovators, entrepreneurs, and investors, and are fueling an increasingly diverse ecosystem of companies and applications,” the AG’s office wrote in the letter. “But virtual currency is also a highly speculative sector, featuring significant volatility, instability, and risk. Moreover, published reports indicate the sector has attracted fraudsters, market manipulators, and thieves.”

The platforms often lack basic protections of traditional investing platforms and disclosures of rules and practices vary widely, making it difficult for investors to evaluate risk, 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,” Schneiderman said. “Yet, too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platform.”

A questionnaire sent to each exchange, requests information about commercial policies and procedures, basic operations and fees, as well as controls to avoid money laundering and hackers.
Although the initiative aims to protect the interests of New York residents who carry out such transactions, the international nature of the business may be affected.

“Gemini applauds the Attorney General’s focus on this industry and the Virtual Markets Initiative, and we look forward to cooperating with and submitting our responses to the questionnaire that has been circulated,” Tyler Winklevoss, CEO of Gemini, said in a statement.
Gemini, recently proposed creating a national self-regulatory body to govern and establish best practices for the nascent industry, which is currently regulated primarily at the state level.


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