The General Prosecutor of the state of new York published a report “Initiative integrity virtual market”, which presented its findings on the situation in 9 of cryptocurrency exchanges, queries were sent in April of this year: Bitfinex, bitFlyer USA, Bitstamp, Bittrex, Coinbase, Gemini Trust Company, itBit, and Poloniex Tidex – and opened in July of the platform HBUS.
As companies were free not to respond to the request of the Prosecutor General, from participation in the study refused the crypto currency exchange Kraken, Binance, Huobi and Gate.io. While the Ministry had doubts that these platforms comply with the rules of trade in the state of new York and information on Binance, Gate.io and Kraken was transferred to the Department of financial services of the state of new York (NYDFS) to detect violations of requirements for virtual currency trading.
The authors of the 42-page report came to the conclusion that many of the studied platforms are vulnerable to market manipulation and to varying degrees willing to discharge their obligations to clients. The main worry was caused by three things: multiple regions of business activity and operating roles create potential conflict of interests, platforms, you need to make more efforts to prevent abuse, and they provide protection of customer funds is often limited and illusory.
In addition, the number of platforms allows its employees to trade on their personal accounts, they also conduct trades on behalf of the company. For example, on the Circle has less than 1% of transactions on its site Poloniex, private activity BitFlyer USA leaves about 10%, and Coinbase – 21%. Bitfinex and Tidex, unlike other sites that do not require their clients to follow the policy of KYC and opening accounts are restricted to information about the e-mail address, name, phone number, or an indication of the country or state of residence. All platforms can track the IP used by clients, but only Bitstamp and Poloniex block customers who come to them with VPN.
We will remind that earlier in the United States addressed the issue of whether to invite the Senate to repeal or revise the new York “setlicense” (Regulations) 2015, which defines requirements to existing bitcoin and blockchain-companies in new York and caused “the great Exodus of bitcoin” from it.