Eric T. Schneiderman Office of the Attorney General
The New York attorney-general Eric Schneiderman has launched a Virtual Markets Integrity Initiative, with an inquiry into the policies and practices of digital currency trading platforms. Thirteen major cryptocurrency exchanges have received a request from Mr Scneiderman to provide information on their operations, internal controls, and other key issues. Mr. Schneiderman said in a statement that the Virtual Markets Integrity Initiative sets out to promote “the accountability and transparency in the virtual currency marketplace that investors and consumers deserve.”
The attorney-general’s questionnaire asks the platforms to provide information such as their approach to fighting market manipulation, operation of bots, usage of non-public trading information, and protection of customer funds. The initiative aims to bring average investors a better understanding of the risks and protections associated with cryptocurrency trading platforms. The statement added: 'Often, the platforms lack the basic market protections of traditional investing platforms. Moreover, the extent of disclosures to customers about trading rules, internal controls, and other basic practices varies from platform-to-platform, making it difficult or impossible for prospective users to evaluate the actual risks of trading on a particular platform.'