Cryptocurrency exchanges get 'fact-finding' letter from New York

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New York Attorney General Eric Schneiderman asked 13 cryptocurrency exchanges for detailed information about their operations as part of a "fact-finding inquiry."

Schneiderman said in a statement Tuesday that he sent a letter to the exchanges seeking information on their internal controls and how they protect customer assets. The inquiry is part of an effort called the Virtual Markets Integrity Initiative, a program he says is intended to "increase transparency and accountability" on platforms used to trade cryptocurrencies and inform enforcement agencies, investors and consumers.

The letter, sent to platforms including Coinbase Inc., Gemini Trust Co. and BitFlyer USA Inc., comes as regulators around the world are increasingly scrutinizing cryptocurrencies. The platforms often lack basic protections of traditional investing platforms and disclosures of rules and practices vary widely, making it difficult for investors to evaluate risk, Schneiderman said.

“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," Schneiderman said. "Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platform."

Bloomberg News
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