New York Investigates 13 Cryptocurrency Exchanges with Practic Questions

The General Attorney of New York Eric Schneiderman has launched an inquiry into the policies and practices of 13 cryptocurrency exchanges, including Coinbase, Bitfinex, Bitstamp, Payward, Gemini, Kraken, bitflyer, ifinex, Bittrex, Poloniex, Binance, Tidex,, itbit, and Huobi. These exchanges were asked to complete a questionnaire.

In the question template there were questions regarding: Who owns more than 5 percent of the entity; the policies and procedures regarding moving value between wallets and virtual and fiat currencies; the policies and procedures for margin trading and the use of bots; when the exchange locks in a price; and whether the exchange has any safeguards in place to prevent suspicious trading activity or market manipulation.

Also the AG office asked if there is any restriction from exchanges to prevent employees from trading on the exchange. The AG office said in its announcement that bitcoin exchanges often lack protections. The office mentioned:

“The extent of disclosures to customers about trading rules, internal controls, and other basic practices varies from platform to platform, making it difficult or impossible for prospective users to evaluate the actual risks of trading on a particular platform.”

Bitcoin News

Schneiderman said the probe would promote accountability and transparency in virtual currency markets. He pointed out;

“With cryptocurrency on the rise, consumers in New 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 these trading platforms”.

Earlier this week, Coinbase acquired, makers of a paid email product that lets people earn bitcoin for replying to emails or completing surveys. The value of the transaction was not disclosed.

From the start of this year, several platforms have been banning cryptocurrency advertisements, typically citing the high percentage of scams found in the space. Earlier in March Google and Twitter announced bans, while Facebook led off in January with its ban. Earlier this month, South Korean authorities arrested the CEO of the Coinnest exchange for money fraud, with prosecutors accusing the executives of siphoning funds out of customer accounts into their own.


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