The New York State Attorney General’s office has concluded that cryptocurrency exchanges are open to market manipulation and do a poor job of protecting consumers, particularly when compared to established financial markets.
As reported by CNBC, the office published a 32-page report on Tuesday titled the “Virtual Markets Integrity Report,” which found a variety of issues in regards to “transparency, fairness, and security” in the world of cryptocurrency trading. Furthermore, there exists a serious lack of investor protections.
Unleash the Kraken
The inquiry was originally launched in April by former Attorney General Eric Schneiderman — who resigned following allegations of physical abuse from multiple women.
Ten cryptocurrency exchanges complied with the inquiry, while four politely (or not so politely) declined. High-profile exchange Kraken was one such exchange which fell into the latter category, with the CEO harshly tweeting:
Somebody has to say what everybody's actually thinking about the NYAG's inquiry. The placative kowtowing toward this kind of abuse sends the message that it's ok. It's not ok. It's insulting. https://t.co/sta9VuXPK1 pic.twitter.com/4Jg66bia1I
— Jesse Powell (@jespow) April 18, 2018
Does Kraken Care?
The attorney general’s office did not roll over to Kraken’s insubordination.
It is also worth mentioning that, as noted by CNBC, Kraken does not have a BitLicense — a requirement to provide services to New Yorkers. As such, Kraken (as well as Binance and Gate.io) may be breaking the law.
What do you think about the New York State Attorney General’s office’s report? Do you think Kraken should have complied with the inquiry? Let us know your thoughts in the comments below! While you’re at it, check out our unbiased Kraken review here!