U.Today is supported by its audience. When you buy through referral links, we may earn a commission.

New York AG Report on Cryptocurrency Exchanges Shows Concerns Over Market Manipulations

News
Wed, 09/19/2018 - 07:22
Put your
crypto to
work
  • 1.30

    Interest per week

  • 67.5

    Interest per year

  • 3.60

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • New York Attorney General accuses Kraken of breaking the law

Cover image via U.Today

According to a Bloomberg report, New York Attorney General Barbara Underwood has recently stated that three crypto exchanges are not operating legally in the state. Notably, such big-name crypto companies as Binance and Kraken are among them.

Must Read
Powell Says Kraken Crypto Exchange Will Register with SEC - READ MORE

You’ve been warned

In her statement, the AG claims that the transparency of investment should be of paramount importance when it comes to trading (whether it would be traditional institutions in the likes of NYSE or newfangled cryptocurrency exchanges). Underwood believes that many platforms that facilitate trading digital assets still lack integrity in their policies, which jeopardizes their users’ safety.

Back in August, Underwood put the 13 major cryptocurrency exchanges that operate in New York under intense scrutiny, requesting the data related to their operations and all the measures that are taken by these firms to protect their customers from rampant market manipulations. Kraken, the 14th biggest exchange in the world, did not participate with its CEO Jesse Powell publically calling this inquiry “insulting” on Twitter.

Earlier, Kraken left the New York jurisdiction in 2015 due to the onerous nature of BitLicense requirements.     

Proprietary trading concerns

Another matter of concern, according to Underwood, is that some exchanges are wont to practice proprietary trading (when the company trades currencies with its own money). According to the aforementioned report, the San Francisco-based exchange Coinbase has over 20 percent of its volume inextricably connected to proprietary trading. The AG says that it poses a risk for customers since one source has too much leverage over the liquidity of a certain asset.

Must Read
Coinbase Releases Response to NYC Attorney General’s Probe - READ MORE

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

Recommended articles
Bitcoin (BTC) Price Might Be Ready for Take-Off, Exchange Data Shows

Bitcoin (BTC) Price Might Be Ready for Take-Off, Exchange Data Shows

I Will Not Let Bitcoin (BTC) Price Go to Zero: CZ Binance

I Will Not Let Bitcoin (BTC) Price Go to Zero: CZ Binance

137.5 Mln XRP Kicked Between Exchanges as XRP Liquidity Hits New ATH

137.5 Mln XRP Kicked Between Exchanges as XRP Liquidity Hits New ATH