New York launches inquiry, saying people lack ‘basic facts’

The New York attorney general, Eric Schneiderman has launched an inquiry into cryptocurrency exchanges. It is with regards to the fact that not many people have basic facts known.

Schneiderman described the inquiry into the policies and practices of platforms used by consumers to trade cryptocurrencies.Especially as Bitcoin as part of a broader effort to protect cryptocurrency investors and consumers.

“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 platforms.”

The New York prosecutor said his investigators had sent out letters to leading exchange platforms, including Coinbase, requesting disclosures on their operations and conflicts of interest.

The prosecutor described virtual currency as a “highly speculative sector, featuring significant volatility, instability, and risk. Moreover, published reports indicate the sector has attracted fraudsters”

As the state’s chief law enforcement agency, Schneiderman said in a press release, it is his office’s responsibility to protect “consumers and investors from these bad actors and ensuring the fairness and integrity of New York’s financial markets”.

The moves come as regulators and banking officials express increasing concern at the wild ride some investors have experienced with the nascent digital currencies and the exchanges that consumers use to access them.

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