In a letter, Attorney General Eric Schneiderman this week urged Cuomo and legislative leaders to close a loophole in New York's double jeopardy law shielding recipients of presidential pardons from state prosecution.
According to a press release issued by the New York Attorney General's Office this week, initial letters were sent to over a dozen exchanges, requesting information about their business practices and systems-including whether they now use bots, or whether they have any conflicts of interest.
Schneiderman continued, alleging that the Virtual Markets Integrity Initiative will aim to promote accountability and transparency across digital exchanges, stating that it is something "investors and consumers deserve".
Huobi Global Limited (Huobi.Pro). For this reason, this questionnaire was sent asking about topics such as exchange policies, procedures, suspensions, privacy, and prevention of money laundering.
He also blamed other cryptocurrency exchanges for "kowtowing" to the probe and others like it.
"The regulatory structure that we created for virtual currency has helped our licensed companies attract greater interest from customers, investors, and potential financial services partners", New York Department of Financial Services superintendent Maria Vullo last week. Buying and trading cryptocurrencies should be considered a high-risk activity.
The Attorney General stated that the rationale behind the questionnaire was to " protect consumers and ensure the fairness and integrity of the financial markets".
"Legitimate entities generally like to demonstrate to their investors that their money will be protected".
"[This information] is critical, given reports of the theft of vast sums of virtual currency from customer accounts, sudden and poorly explained trading outages, possible market manipulation, and difficulties when withdrawing funds from accounts", the AG's Office said. "This is basic information that credible platforms should all have on hand". As a contributor to Billionaire 365, Jackson mostly covers markets and trade.
The Attorney General's office will analyze the responses, compare them across platforms, and at the conclusion of this process, present what it learned to the public.
Each letter comprises of a 34-point questionnaire which the exchanges have been asked to get it completed by filling all necessary details and submit before May 1st. In the event you have any questions or concerns, please do not hesitate to reach out to us.