The office of the attorney General (OAG) of new York issued a report on cryptocurrency trading sites, which indicated that many of them vulnerable to market manipulations. The document also declared some of the exchange potential violators of the state law.

Its investigation the attorney General’s office began in April. For this purpose, the Supervisory authority sent a request to provide the necessary information 13 the most noticeable cryptomeria, including Coinbase, Kraken, Bitfinex and Binance. Some sites refused to participate in the investigation. The results of the work were published in a document entitled Virtual Markets Integrity Initiative report. It outlines in detail the methods that the crypto currency exchange is used in order to monitor and prevent market manipulation. Several sites admitted that he considered these actions are possible due to the large number of platforms, however, there were those exchanges which have tried to improve the control measures, for example, Gemini.

In addition, the office of the attorney General found out how many trade operations, operations on the platforms make the exchange. So startup Circle reported that is responsible for less than 1% of the total volume of trading Poloniex, Coinbase but this figure reaches 20%.

The report notes that, unlike traditional marketplaces, cryptonote does not yet have effective ways of market surveillance and is unable to detect and punish suspicious trading activity.

In the report special attention is paid to the stock exchange Kraken, which refused to cooperate with the attorney General’s office and gave the APR official and rather harsh answer on this.

“OAG is not able to find anything about the methods and procedures against market manipulation, or suspicious trade, which are used not involved in the investigation of the platform (Binance, Gate.io, Huobi and Kraken). However, the official response of the exchange Kraken is alarming. In its announcement about the company’s decision not to participate in the investigation, Kraken said that market manipulation doesn’t matter to most cryptocurrency traders, though acknowledged that fraud was widespread in the industry,” the report says.

In the end, their work gave information about exchanges Binance, Gate.io and Kraken in the Department of financial services of the state of new York, that he understood the legal activities of these linked sites.

Recall that the crypto currency exchange must obtain a license Regulations in order to legally conduct its activities in new York. However, many members of the crypto community find requirements that must be met for courts, too hard. So trading platform ShapeShift had to leave the state, and its leader called the situation absurd. Also criticizes the position of regulators in new York the aforementioned Kraken, which at the time of receipt of the request from the OAG for three years worked in the state.