Community Backlash: NY Regulator's demands for crypto manipulation come under fire


It goes without saying that the crypto industry is quite susceptible to a negative press assault by the legacy markets, due to its infancy. As such, many leaders in this nascent industry have developed an attitude to respond directly to "FUD" cases, often leading to public social media channels to communicate their thoughts.

Crypto Exchange CEO Calls Out New York Regulators Explained

As recently reported by Ethereum World News, the New York State Attorney General recently published an extensive report highlighting how his office sees exchanges of cryptocurrencies from a legal and regulatory point of view.

Due to the displeasure of many investors in this budding asset class, 42- The page document drew attention to the main cryptographic exchanges in today's market, highlighting three main problems that include risks of manipulation, lack of operational security and conflicts of interest.

In the report by Babara Underwood, New York Attorney General, San Francisco Based on Kraken, along with Binance and, there were some of the exchanges mentioned.

While Binance and did not respond to the damaging affirmations of the report, Jesse Powell, CEO of Kraken, who became famous for his witty remarks on regulation, went on Twitter to hit New York. In a tweet that quickly made headlines throughout the cryptosphere, Powell compared New York, which he calls NY, as "the abusive, controlling former who you broke 3 years ago but continues to haunt you."

While this tweet was probably made a little joking and with some dramatic exaggeration, for subsequent statements released on the official feed of the exchange which implied that the relationship was "highly unprofessional / malevolent", it is clear that the main base of Kraken's employees and exponents was offended by the claims and disbelief of the General Prosecutor.

Erik Voorhees, who himself was a subject of controversy, endorsed Jesse's statement, releasing his point of view on the subject, once again hitting the authority of New York. Referring to the role of New York as a global financial leader and the growing importance of cryptocurrencies, ShapeShift's CEO revealed that he expects "NY will lose its position as head of global finance if it does not change soon." [19659007] And those kinds of people never seem to realize their behavior is what led to the breakup … NY, if it does not change soon, it will lose its position at the head of global finance. Keep it up @ jespow

– Erik Voorhees (@ErikVoorhees) September 19, 2018

But quite interesting, the author of the report he predicted this unfavorable response in advance from Kraken, arguing that the way the platform responds to regulatory demands in public forums is "alarming". But Powell's antics will not change very soon, since it has become evident that the entrepreneur is

Coinbase "Corrects the record", does not participate in proprietary trading

In the aforementioned report, the Underwood name of the regulator of New York fell Coinbase in its segment of conflict of interest, under the proprietary trading subcategory. The Attorney General said that while the proprietary trading acts are not opposed to certain policies if disclosed, the fact that Coinbase is making billions of dollars in exchange for itself and has not communicated this fact is a legal problem in the eyes of the authorities of regulation.

Although many have taken this statistic as a fact, Mike Lempres, Coinbase's Chief Policy Officer, who is active in the cryptographic regulatory ecosystem, has come to cry, stating that the figure has been misinterpreted and reported in the wrong context. [19659004] In an average post on the issue, Lempres explained that its consumer platform, better known as for many, runs operations under the guise of Coinbase, but on behalf of the company's millions of clients for access the liquidity provided throughout the expansive ecosystem company.

By closing the piece, Lempres claimed that the mission of his employer is to become "the most reliable place in the world to buy, store and interact with cryptocurrency."

  Photo by Vince Fleming on Unsplash [19659018] Girl in a jacket "/>

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