Schneiderman Seeks Operational Information From Crypto Platforms

Schneiderman Seeks Operational Information From Crypto Platforms

Cryptocurrency exchanges match buyers and sellers of virtual currencies. "Yet too often, consumers don't have the basic facts they need to assess the fairness, integrity and security of these trading platforms".

The questionnaire delivered to the virtual currency platforms asks for similar information so that average investors can better understand the risks and protections, the attorney general's office says.

Schneiderman sent letters to 13 exchanges like Coinbase, Gemini Trust Company, Bitstamp USA, and Huobi Global Limited to provide key information about their ownership, operations, trading policies and procedures, outages and other trading suspensions as well as details about privacy and money laundering, according to a press release on the initiative.

Cryptocurrency trading platforms now often lack the basic protections of traditional investing platforms and can differ widely from one another, making it hard for prospective users to evaluate their actual risks, according to Schneiderman. "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". The AG's office expressed specific interest in learning more about these platforms' policies on bots and their approach to combating suspicious trading and market manipulation.

The AG's office intends to analyze the responses and share what was learned with the public.

Cyber thieves are increasingly targeting virtual currencies, which have spiked in value.

Schneiderman has begun a probe of major cryptocurrency trading platforms as part of a broader effort to protect investors and consumers.