On Tuesday a published report from the New York Attorney General’s office mentioned that Crypto exchanges Kraken, and Binance are looking at regulatory scrutiny a possibility of state regulations violation suspicion.

Virtual currency trading platforms and the integrity initiative

This year in April, the state released its initiative on Digital Markets Integrity , asking thirteen initiatives to volunteer sharing data on their methods including controls in the internal and security against fraud and manipulation of the market. 4 of the trading firms- Binance, Huobi, Kraken and say that they do not accept exchanges from New York and declined to respond to the request.

After the announcement of the decision of the firm was not to comply in the process. A declaration was made by Kraken that manipulation of the industry market does not matter to a lot cryptocurrency investors and traders while even confirming scams are expanding in the field. The description of the statement by the Attorney General was alarming and the office wanted to find out if Kraken and their peers refusing to reply on the questionnaire truly didn’t function inside New York. As a result, the Attorney General has now referred three of them to the New York Department of Financial Services (NYDFS) for possible violation of the state’s virtual currency law. Neither of the three exchanges has commented on the news yet.

Findings and reports on New York operation

The report from the Virtual Markets Integrity Initiative also identified three wide areas of concern in the cryptocurrency markets. The Attorney General first mentioned that a lot of programs are yet to implement efforts to monitor and stop abusive trading practices. Some of the cryptocurrency exchange venues also conduct overlapping lines of business that present a serious conflict of interest which includes trading for their own account on their own venues as well as giving their own digital currencies or charging firms to list their tokens. The final major problem found in the report is that crypto trading have limited security of customer funds with no generally accepted ways for auditing digital assets.

Barbara Underwood, the newly-appointed Attorney General stated that, residents of New York are deserving of a accountability and transparency when investing, be it on the Stock Exchange of New York or on a crypto program. A lot of digital currency platforms do not posses the necessary laws and regulations to ensure the just, integrity, and protection of their trading.