NY AG finds pervasive vulnerabilities in virtual currency exchanges

By Lene Powell, J.D. A new report by the New York Attorney General reveals serious, widespread deficiencies in customer protections at virtual currency exchanges, leaving customers vulnerable to abusive trading practices, conflicts of interest, and asset losses. The Virtual Markets Integrity Report provides details for 10 virtual asset trading platforms and suggests questions for customers to ask before trading. The AG’s office also referred three exchanges (Binance, Gate.io, and Kraken) to the New York State Department of Financial Services for possibly operating unlawfully. “New Yorkers deserve basic transparency and accountability when they invest—whether on the New York Stock Exchange or on a cryptocurrency platform. Yet, as our report details, many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity, and security of their exchanges,” said Attorney General Barbara Underwood. In addition to the…

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