Eric Schneiderman, the Attorney General of New York, sent a letter to thirteen exchange platforms, as well as a questionnaire about their practices. This survey is simply titled “Virtual Markets Integrity Initiative”.
Announced yesterday in a press release , the purpose of this operation is “to improve the transparency and accountability of the main cryptocurrency trading platforms to protect investors in digital currencies” . The letter encourages the platforms to provide detailed information on the following:
- Control and ownership;
- Exchange mechanisms ( trading engine , use of bots, fees);
- Relations with banks and insurance companies;
- Internal controls and security of digital assets;
- KYC / AML (Anti-Money Laundering) Practice .
This missive is addressed to thirteen operators ( GDAX , Gemini , BitFlyer , Bitfinex , Bitstamp , Kraken , Bittrex , Polonyx, Binance , Tidex, Gate.io, itBit and Huobi). New York State is known for its BitLicense , which is very demanding of companies in the crypto-active sector. The questionnaire attached to it has 34 points and must be returned by May 1st. The information requested is precise, for example:
“14. Identify the average time and time ranges for performing an exchange. If runtimes vary by currency, order type, or transaction type, specify an average and a time range for each. “
Or even :
“23. Identify anyone other than your employees having access to your order book or other non-public (or not yet public) auction information, and the relationship of that person (s) with your company, its officers, its directors or its employees. “
The New York authorities intend to bring the exchange rate platforms to a standstill, as some are recalcitrant and lack transparency about their activities. The result of this survey will be accessible to all so that the investor can know this information, and that the platforms can operate in a transparent way, under the aegis of the Department of Financial Services of New York.