New York’s Attorney General Eric T. Schneiderman has launched a campaign aimed at sanitizing the crypto-market in the USA. The campaign has been dubbed the “Virtual Markets Integrity Initiative” and it targets cryptocurrency exchange platforms in a bid to protect consumers and investors.
The AG aims to increase awareness to consumers and investors through the market initiative. Details of the initiative were sent to major virtual currency exchange platforms through letters. In the letters, the AG wants the exchange platforms to explain fundamental aspects of their operations. The exchange platforms are supposed to explain how they operate, their internal controls and how consumer’s assets are protected. Through the initiative, the AG seeks to improve transparency and accountability.
Furthermore, the initiative will help enforcement agencies with the necessary information. Investors and consumers will also gain since they will be able to understand how the exchange platforms operate. The letters sent were in the form of a questionnaire and were sent to major exchange platforms across the country. Some of the exchanges that were contacted are: Coinbase Inc, Gate Technology Incorporated (Gate.io), itBit Trust Company, Huobi Global Limited (Huobi.Pro), Gemini Trust Company, Payward Inc, bitFlyer USA Inc, and Binance Limited.
Reasons for Launching the Market Initiative
Cryptocurrency is a new investment option that many people would want to invest in but lack the basic information. The exchange platforms play a significant role in connecting investors with the virtual currencies in the market. But most investors lack the basic information about these exchange platforms. This initiative’s primary focus is to increase awareness to investors about the integrity, fairness, and the security measures put in place by exchange platforms.
The AG is exercising his legal mandate to the people as required by the law.All these come after an increase in interest and regulation targeted at crypto platforms within the country. Through the initiative, he will be able to protect consumer’s rights by ensuring the exchange platforms are fair. An average investor is likely not able to get information about an exchange platform operations, policies, and internal controls like major investors. But now, average investors will also be able to access the information through the AG’s initiative.