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New York's Attorney General Is Investigating Bitcoin Exchanges (theverge.com)
The office of New York Attorney General Eric Schneiderman announced today that it has launched an investigation into bitcoin exchanges. He's reportedly looking into thirteen major exchanges, including Coinbase, Gemini Trust, and Bitfinex, requesting information on their operations and what measures they have in place to protect consumers. The Verge reports: "Too often, consumers don't have the basic facts they need to assess the fairness, integrity, and security of these trading platforms," Schneiderman said in a statement. His office sent detailed questionnaires to the thirteen exchanges, asking them to disclose who owns and controls them, and how their basic operation and transaction fees work. The questionnaire also asks for specific details on how exchanges might suspend trading or delay orders, indicating Schneiderman is particularly concerned with exchanges manipulating the timing of public orders. The investigation will attempt to shed more transparency on how platforms combat market manipulation attempts and suspicious trading, as well as bots, theft, and fraud. Many of the exchanges Schneiderman is targeting, such as Beijing-based Huobi, have headquarters located outside the U.S., but the attorney general has jurisdiction over any foreign business operating in New York. Coin Center's director of research Peter Van Valkenburgh tells The Verge that the new investigation might be overkill, given the existing rules already in place for bitcoin exchanges. "Far from being unregulated," he says, "these businesses must contend with state money transmission licensing laws, federal anti-money laundering law, CFTC scrutiny for commodities spot market manipulation, SEC scrutiny for securities trading (should any tokens traded be securities), and in this case, state consumer protection investigations from the several attorneys general."
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'nuff said. If you think he has ANY interest to "protect consumers", you are a dumbass.
What is the AG supposed to do about a web site located outside his jurisdiction?
Apparently election time for the AG is coming...
It's been long time coming, need to protect the consumer!
/sarcasm Let's focus on 1% of problem and ignore the 99% that actually effect New Yorkers.
Guess they got nothing better to do.
For climate change. A case he cannot win. Yeah, thanks asshole.
Just for the record, why is every person from New York State a jackass?
Are (any) fiat-currency and (any) cryptocurrency really equivalent, as cryptocurrency fans claim?
For example, US Dollar and Bitcoin are really equals?
Value/validity/authorization of US dollar is provided/guaranteed by US Government (and in-turn whole US Public)!
Also, not to mention, US Dollars in any US Bank is insured by US Government!
What authorization/guarantee/insurance is behind Bitcoin? Nothing!
Sorry but that is the end of discussion then!
Why do you think Satoshi Nakamoto is really hiding his identity, if Bitcoin is really such a great innovation?
He is just someone does not like media/fan attention?
Or, could it be really because Bitcoin (and all cryptocurrencies followed it) are actually Ponzi Schemes?
(So he knew very well that law enforcement would come after him sooner or later?!)
If so-called cryptocurrencies are really good innovation, why they attract so many criminals/criminal activity?
Could it really be because, all cryptocurrencies themselves are scams, and that is why they attract all kinds of criminals/criminal activity?
If so-called cryptocurrencies are really currency, why no company/store can use Bitcoin as currency anymore?
Because the price of Bitcoin proved to be extremely unstable to use as a currency?
Would the result be different, if Bitcoin replaced by any other "cryptocurrency"?
Aren't all work the same way?
If so-called cryptocurrencies are really money; isn't people issuing their own money, illegal already, in all countries?
If so then, why they are still not banned in all countries?
Or, they are not actually virtual currency but virtual investment?
But, if they are actually investment, why we need/want them?
What would happen to world economy, if people invested in virtual investments, instead of real investments?
Or, all so-called cryptocurrencies are actually just a modified (made decentralized and paying variable interest) Ponzi Schemes?
(Price of cryptocurrencies would keep increasing in the long term (by their design), so it is equivalent of paying variable interest to all long term investors.)
As more and more people invest in cryptocurrencies, it will become harder and harder to ban their trading everywhere!
All cryptocurrencies need to be banned globally before it is too late!
"Far from being unregulated,"
That they are. They aren't required to maintain an orderly market (fill orders at best available price at that time). They're not required to post a bid/ask that they can't front run and they can buy and sell from their own account when there's better pricing available.
This allows them to manipulate the spread that a listed or transparent market automatically corrects.
The main issue is front running and not being required to maintain an orderly market. Spot sellers need to provide their own lubricant.
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Back on April 11th, Vice News put up a really interesting documentary titled, "Street Gangs on the Dark Web". In the video, a reporter interviews a former drug dealer who has been using Bitcoin and the Dark Web to buy blank credit cards, reprogram them using stolen credit card data on the Dark Web, use the cards to get cash and goods, then use some of the gains to buy Bitcoin anonymously at these exchanges to continue funding his enterprise. And they also shared that a large majority of these walk-up Bitcoin exchanges are in the state of New York.
I suspect the attorney general watched the documentary as well. Because the video has mysteriously been taken down, with no mention found ask to why, and a Google search for "Vice News Street Gangs on the Dark Web" proves the video at one point did exist, but none of the links contain the video any longer. Mod points to anyone who can find a working copy of the video.
Are attorney generals required to be members of the bar, or are they political operatives who manage attorneys and decide on priorities?
Your ad here. Ask me how!
In New Hampshire we have a lot of crypto currency vending machines and one of the more recent entrance into the market here I had the opportunity to sit down and talk with about his operations. He indicated that there were restrictions on his machines to prevent users from New York from making purchases explicitly because he didn't want to risk being tied up with NY bull shit regulations. The cost of complying with the regulations significantly increases the fees. When you start comparing the businesses which refuse to do business in NY or even in other states with more regulation you'll see a huge difference in the fees paid. Who would have thought? Less regulation = good. While there are some risks the risks are relatively low, but the smartest of us don't utilize these exchanges at all. Why bother when it means you'll increase your risk of suffering from significant amount of government tyranny. There is a reason I don't deal with exchanges. When I purchase crypto currencies I purchase them from others wanting to sell off-line. Now I am in New Hampshire so this is relatively easy because we have lots of people even in a small town like I live who buy, sell, and just plain old receive as payment regularly. And while a small percentage of people here treat crypto currencies as an investment most of us just use it as a currency. Overall we've probably all done better than compared to those holding US dollars or other traditional currencies. I certainly know I have.
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R>I>P
What the A.G. SHOULD be doing is investigating state and city law makers on gun control issues.
Per the U.S. Constitution Article 6 Section 2, any state law in direct conflict with a valid federal law results in the state law without standing. The law makers are also in violation of Title 42 of the U.S. Code, and title 18 of the U.S. Code which is a felony. This applies to the law makers, law enforcers, and the judges.
Step up to the plate A.G. and do your job.
None of these businesses are based in New York, and as a STATE attorney general, he has NO RIGHT to investigate interstate commerce.
I think the New York Attorney General should stay in New York where he belongs. Doing business with New Yorkers across state lines does NOT put you under the jurisdiction of New York law enforcement.
Interstate commerce is under the SOLE jurisdiction of the Federal Government.
It seems every single NY AG, just uses his position for political gain.