The attorney General of new York Barbara underwood said that cryptocurrency exchanges can work illegally in new York.
Ideas about possible violations was sent to the Department of financial services new York on Binance, Gate.io and Kraken. Each of these exchanges had previously refused to provide information requested by the state. The exchange did not immediately respond to requests for comment.
13 exchanges were required to provide details about their activities, internal controls and safeguards against market manipulation and fraud. Nine platforms have fulfilled these requirements, four sites stated that they are not allowed to trade in new York.
Underwood said that the exchange was found to have no mechanisms to protect investors from fraudulent trading tactics, conflicts of interest and preserve the capital in safety.
“New Yorkers deserve more transparency and accountability when they invest, whether on the new York stock exchange or on the platform of cryptocurrency”, — he said in his statement.
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