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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."
It's been long time coming, need to protect the consumer!
yes because obviously the AG's department is only 1` person and can't possibly be working on more than one thing at a time.
perhaps. but it's more like someone has to step-up for the people when at the federal level (outside of mueller and his staff) it's a shitshow of total incompetence.
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?
"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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they can completely fuck over their business model by shutting down their access to process funds if they choose not to comply.
The feds can do that. The NY-AG can not.
The NY-AG's main focus is driving financial sector jobs out of NY, while building a platform for a run at the governorship.
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.
That's been the pattern since Spitzer
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.
"affect", rather than "effect".
Does this fit in the 1% or the other 99%?
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
Ivan, it's you again.
Hello.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
It seems every single NY AG, just uses his position for political gain.
> AG's department is only 1 person
Show me where I said they were only 1 person?
You completely missed the point. Out of ALL the problems they _could_ be focusing on, they decide to look at a problem that is almost non-existent?!?!
How is "investigating" Exchanges that don't even do business with New York going to solve anything???