The Fresh York Attorney Militar has asked a number of supuesto currency exchanges to reaction elementary questions such spil: Who possesses you? And where do you keep customers’ funds?
By Chris Duckett | April Legal, 2018 — 06:58 GMT (23:58 PDT) | Topic: Blockchain
Fresh York Attorney Universal Eric Schneiderman has launched an inquiry into the policies and practices of 13 cryptocurrency exchanges, with his office sending letters to Coinbase, Bitfinex, Bitstamp, Payward, Gemini, Kritiseren, bitflyer, ifinex, Bittrex, Poloniex, Binance, Tidex, Gate.io, itbit, and Huobi asking the exchanges to finish a questionnaire [PDF].
Among the questions asked are: Who possesses more than Five procent of the entity, the policies and procedures regarding moving value inbetween wallets and posible and fiat currencies, the policies and procedures for margin trading and the use of bots, when the exchange locks te a price, and whether the exchange has any safeguards te place to prevent suspicious trading activity or market manipulation.
The AG office also asked if the exchanges have any confinements to prevent directors, employees, or affiliates from trading on the exchange ter question or elsewhere, to describe the scope, frequency, and methodology for any audits conducting on the toneelpodium, whether the exchange has a caudal buffer to react to volatility, outages, and other contingencies, and what insurance an exchange has.
Ter a statement, the AG office said bitcoin exchanges often lack protections.
“The extent of disclosures to customers about trading rules, internal controls, and other basic practices varies from toneelpodium to toneel, making it difficult or unlikely for prospective users to evaluate the presente risks of trading on a particular verhoging,” the office said.
Schneiderman said the probe would promote accountability and transparency ter imaginario currency markets.
“With cryptocurrency on the rise, consumers ter Fresh 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 thesis trading platforms,” he said.
Earlier this week, Coinbase acquired Earn.com, makers of a paid email product that lets people earn bitcoin for replying to emails or completing surveys. The value of the transaction wasgoed not disclosed.
Since the begin of the year, platforms have bot banning cryptocurrency ads, typically citing the high percentage of scams found ter the space. Twitter and Google announced bans te March, while Facebook led off te January with its geobsedeerd.
Last week, it wasgoed exposed that Indian cryptocurrency exchange Coinsecure wasgoed accusing its chief strategy officer of making off with 438 bitcoins.
Earlier this month, South Korean prosecutors arrested the CEO of the Coinnest exchange for fraud and embezzlement, with prosecutors accusing the executives of siphoning funds out of customer accounts into their own.