The exchange of cryptocurrency may be illegal in NY: AG


  Cryptocurrency Crime

Barbara Underwood, New York State Attorney General, referred to three major cryptocurrency exchanges at the Department of Financial Services of the State (NYDFS) for the potential violation of the virtual currency rules of New York. The reference exchanges are Binance, and Kraken. This was revealed in the report on the integrity of virtual markets published earlier today by the New York State Attorney General's Office (OAG).

The report describes the concerns initially raised by the OAG on the operations of cryptocurrency exchange platforms, in particular regarding security, internal controls, market surveillance protocols and other relevant consumer and investor protections [19659004] Game of cats and mouse

At the beginning of the year, CCN reported that the OAG sent a letter with a 34-point questionnaire to 13 crypto exchanges, including some without active transactions to New York, asking them to take part in its initiative on the integrity of virtual markets aimed at promoting greater transparency in their operations. The 13 exchanges dealt with were GDAX, Gemini, BitFlyer USA, Bitfinex, Bitstamp USA, Kraken, Bittrex, Poloniex, Binance, Tidex,, ItBit Trust Company and Huobi.Pro.

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Binance, the largest cryptocurrency exchange in the world, could work illegally in New York, the state attorney general's office said in a new report.

Following the letter, the CEO of Kraken, Jeff Powell, responded with loud words, stating that the demands of the OAG showed "disrespect" and "right" and that the letter showed Kraken did the right call to "get out of New York three years ago". According to the report of Oag, Binance, Huobi and also refused to participate in the initiative, stating that they do not allow trade from New York.

According to the report, OAG then examined whether these platforms actually did not accept trade from the State of New York and, based on the results of the survey, advanced the recommendation to forward Kraken, Binance and to the Department of Financial Services for an in-depth investigation into the possible violation of the laws on the virtual currency of the state

"Alarming response"

In the document, the OAG complains about the lack of regulation and overseeing the cryptocurrency ecosystem, identifying Kraken for his "alarming" response to the initial letter.

An excerpt from the report reads:

"OAG was unable to review the practices and procedures of non-participating platforms (Binance,, Huobi and Kraken) regarding manipulation or offense trading. , the public response of the Kraken platform is alarming: In announcing the company's decision not to participate in the initiative, Kraken stated that market manipulation "does not matter to most of the encryption traders", even admitting that "scams are rampant" in the industry. "

In another significant move, the report also issued a warning to customers who negotiated on the four non-participating stock exchanges, stating that the platforms may have received payment in exchange for the listing of digital assets, which should inform customers' decisions to interact with them in any way.

Images from Shutterstock

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