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New York Attorney General Barbara D. Underwood releases a report on cryptocurrency markets

Priya

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New York Attorney General Barbara D. Underwood releases a report on cryptocurrency markets
Source: Unsplash

On 18th September, the State of New York Attorney General, Barbara D. Underwood released a report on Virtual Markets Integrity Initiative. According to the report, the initiative was launched with the aim of protecting the investors who are involved in cryptocurrency trading.

The report speaks about the exchange platforms which offer cryptocurrency services to the investors. The Office of Attorney General [OAG] stated that as a part of the initiative they sent out a letter to exchanges for inquiring the policies and practices of the cryptocurrecy exchange platforms. The inquiry focused on details regarding the site outages, trading fees and consequence of bot trading.

The inquiry which was launched in the month of April 2018 had created a lot of controversy in the cryptoverse. It was launched by the former Attorney General of New York, Eric T. Schneiderman. The OAG had stated that they will release a report based on the information collected through the inquiry. It was sent to over 13 exchanges which includes exchange platforms such as Kraken, Coinbase, Bittrex, Bifinex, Gate.io and Huobi.

The main topics which were covered in the inquiry included information regarding the ownership and control, internal controls, trading policies and practices, basic operations and fees, outages and other suspensions of trading, privacy and money laundering, protection against risk to customers and written materials of the exchange platform.

The inquiry resulted in both positive and negative responses in the community. Kraken, one of the leading cryptocurrency exchange platform, openly dissented the inquiry and the CEO of the platform, Jesse Powell called it an “abuse”. The CEO continued to say that they made a wise decision by shifting out of New York as they can “dodge” the inquiry. However, exchanges such as Coinbase had a positive response to the inquiry.

In addition, the report states that the inquiry which was launched saw a positive response from 9 exchange platforms, out of the 13 exchanges that the inquiry form was sent to. The OAG states that the exchanges which voluntarily participated includes:

  • Bitfinex
  • Bitstamp
  • bitFlyer USA
  • Bittrex
  • Coinbase
  • Gemini
  • iBit
  • Poloniex
  • Tidex
  • HBUS, a strategic partner of Huobi

The exchange platforms which did not participate in the inquiry are:



  • Binance
  • Gate.io
  • Huobi Global Limited
  • Kraken

The report states that these exchanges refused to participate in the inquiry because they did not offer trading services from New York. However, this resulted in the exchange platform being called out by the NYAG for possible unlawful operations.

From the information collected by the cryptocurrency exchange platform, the OAG outlined that the business roles and operational roles of trading platforms create potential conflict of interest. In addition, it stated that the trading platform has not taken effective measures to identify and stop suspicious trading and that the protection for customer funds are “often limited”.





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Altcoins

Rabobank announces plans to drop its crypto-project

Sarvesh Kumar

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Robobank to drop its plans of having their own crypto-wallet
Source: Pixabay

Rabobank, a bank based out of The Netherlands, has decided to drop their idea of creating their own native cryptocurrency called Rabobit. The bank had announced their cryptocurrency plans in February 2018. Rabobank was looking at closing the gap between banks and cryptocurrency wallets. However, they have taken this decision after exploring the field for more than a year.

According to a report by Hard Fork, a spokesperson from the bank said,

“After careful consideration with our customers in mind, we recently decided that now is not the time to develop the idea further and bring it to the next phase of innovation”

Their cryptocurrency idea was part of the Rabobank Moonshot program, which was looking at boosting innovation in Fintech services. The bank does not consider their research a waste, but the same has led to valuable insights and experience in general, the spokesperson added

The spokesperson also said,



“We have learned valuable lessons about our customers and the crypto market and on how to design blockchain and crypto applications.”

The spokesperson cited regulatory uncertainty as the reason why the Dutch institution pulled out of the project. Although the bank has dropped the idea, they will be keeping a tab on the market and the regulatory changes in the industry.

Rabobank is not the only bank to drop the idea of having a cryptocurrency wallet. Recently, ABN AMRO, another Dutch bank, also dropped their plans of “Wallie,” their own cryptocurrency wallet. The reason for their drop was also with respect to regulatory conditions in the industry.





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