An investigation has been launched by the New York Attorney General into 13 cryptocurrency exchanges trading bitcoin and other digital currencies. None should be shocked to learn that US authorities launched a probe into Bitcoin trading.
The office of the Attorney General is said to have sent a letter to Bit Trust, Gemini, Coinbase and other exchanges requesting them to avail more facts for investors and traders in this emerging market.
“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,” said Attorney General Schneiderman.
“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.”
Trading policies and procedures
A questionnaire sent to each exchange requests that information about trading policies and procedures, fees and basic operation as well as controls to prevent money laundering and any form of hacking.
The initiative taken by the New York Attorney General’s office is a move set to protect the interest of New York residents who trade cryptocurrency with exchanges. The international nature of the business also means that the outcome of the probe could have wide-reaching consequences.
This investigation comes a day after International Monetary Fund (IMF) boss Christine Lagarde called for a good approach towards regulation in the cryptocurrency space.
Christine Lagarde also explained the global benefits of bitcoin and other cryptocurrencies on IMF’s official blog (website) saying that there should be sensible regulation put in place to help realize the potential of digital currencies and their underlying technology.
“Just as a few technologies that emerged from the dot-com era have transformed our lives, the crypto assets that survive could have a significant impact on how we save, invest and pay our bills,” Ms Lagarde wrote.
“An important initial step will be to reach a consensus within the global regulatory community on the role crypto-assets should play. Because crypto-assets know no boundaries, international cooperation will be essential.”