Major breaking crypto news lit up the crypto community today when a New York State Attorney General referred Kraken, Binance, and Gate.io to the Department of Financial Services.
Barbara Underwood reported in a Virtual Markets Integrity Initiative report that all three exchanges potentially violated the New York’s virtual currency regulations. In the report, concerns are expressed about the operations of these exchange platforms regarding market surveillance protocols, security, and consumer protection.
Earlier this year, a questionnaire was hand out to 13 crypto exchanges, even some that don’t even have an active status in New York. This questionnaire asked the participants to answer questions regarding better transparency into their operations. Some exchanges that took part in this questionnaire were, Gemini, Bitfinex, Kraken, Bittrex, Poloniex, Binance, Bitstamp USA and Gate.io.
According to the CEO of Kraken Jeff Powell, the results that came after were ‘’disrespectful’’ and it’s what they made them decide to leave New York a couple of years ago. Also, Binance and Gate.io declined to participate saying that they don’t allow trading from New York.
This is why the Department of Financial Services wants to start e thorough investigation to determine if there’s a possible bypass of the state’s laws. Customers are getting warnings constantly to be cautious when trading on these said platforms. They also urge customers to interact as much as they can with the providers before making decisions by themselves.
The process is still on-going and no further information is given from the state of New York or the Attorney General herself.
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