NewYork Revealed A List Of Unlawfully Operating CryptoExchanges.

NewYork Revealed A List Of Unlawfully Operating CryptoExchanges.

2018-09-19 | Selina Mathew

NewYork Revealed A List Of Unlawfully Operating CryptoExchanges.

New York attorney General ‘Barbara Underwood’ has mentioned 3 major digital currency exchanges to the state’s Department of Financial Services [NYDFS] for potential violation of country’s virtual currency laws. These exchanges are Binance, and Kraken. This was unconcealed in the Virtual Markets Integrity Initiative Report released recently by the workplace of the New York State Attorney General [OAG].

The report details the issues primarily raised by the OAG regarding the operations of crypto exchange platforms, particularly relating to security, internal controls, market inspection protocols, and several relevant customers and investors protection.

Earlier this year, OAG sent out a letter with a 34-point questionnaire to thirteen crypto exchanges, as well as some without active operations in New York, asking them to require half of its Virtual Markets Integrity Initiative geared towards fostering greater transparency into their operations. The thirteen exchanges self-addressed were GDAX, Gemini, bitFlyer USA, Bitfinex, Bitstamp USA, Kraken, Bittrex, Poloniex, Binance, Tidex,, itBit, and Huobi.Pro.

Mentioning further, Kraken chief executive officer ‘Jeff Powell’ responded with robust words, stating that the OAG’s demands showed “disrespect” and “entitlement,” and that the letter showed Kraken created the correct decision to “get the hell out of recent New York 3 years past.” In line with the OAG report, Binance, Huobi, and additionally declined to participate within the initiative, stating that they don’t permit any trading within New York.

Following the report, the OAG then investigated whether or not in actual reality these platforms settle for no trades from the state of New York, and supported the results of the investigation, it created the advice to forward Kraken, Binance, and to the Department of Financial Services for a radical investigation on attainable flouting of the state’s virtual currency laws.

In the document, the OAG bemoans the shortage of regulation and direction inside the crypto exchange system, singling out Kraken for its “alarming” response to the initial letter.

An excerpt from the report reads:

“The OAG couldn't review the practices and procedures of non-participating platforms (Binance,, Huobi, and Kraken) regarding artful or abusive trading. However, the Kraken platform’s public response is frightening. In saying the company’s decision to not participate within the Initiative, Kraken declared that market manipulation “doesn’t touch most crypto traders,” even whereas admitting that “scams are rampant” within the industry.”

In another important move, the report additionally issued a right away warning to customers trading on the four non-participating exchanges, stating that the platforms might have received payment in exchange for listing digital assets, that ought to inform customers’ choices to act with them in any manner.

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