New York Investigates 13 Crypto Exchanges
New York investigates 13 cryptocurrency trading platforms, according to a CNBC report.
“Too often, consumers do not have the basic facts they need to assess the fairness, integrity, and security of these trading platforms“.
All 13 crypto trading platforms are required to provide information on all companies’ operations, controls, and any other important element. The reason why the authorities decided to open an investigation on exchanges is the excessive increase in the number of cybercriminal attacks that have managed to squeeze out funds from users’ accounts. Thus, by this measure, Schneiderman hopes that users will become more confident in the services they use.
Kraken doesn’t want to comply
A remark is that one crypto exchange did not want to be part of this investigation, refusing to provide the necessary information. Kraken, one of the largest crypto trading platforms globally, is not anymore part of the investigation, according to a CNBC report.
The Co-founder and CEO of Kraken, Jesse Powell, stated that:
“The resource diversion for this production is massive. This is going to completely blow up our roadmap! Then I realized we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet”.
“Ordinarily, we’re happy to help government understand our business, however, this is not the way to go about it. Kraken left New York because New York is hostile to crypto and this ‘questionnaire’ we received today proves that New York is not only hostile to crypto, it is hostile to business,” Jesse Powell added.
More details, you will find in the picture right below.
Many of the cryptocurrency trading platforms have decided to suspend their activity in New York for the simple reason that they are required to hold a BitLicense in order to carry out their operations.