New York Attorney General Eric Schneiderman has been concerned about the way cryptocurrency exchanges operate, which prompted him to launch on Tuesday the Virtual Markets Integrity Initiative (VMII).
The VMII is a simple fact-finding mission that aims to study how the platforms crypto traders use operate, with focusing on learning about their customer protection and transparency policies.
The AG’s office sent letters to 13 such exchanges, each containing a questionnaire that starts out by asking for basic information about the company.
«With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms. Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve», – Schneiderman said.
Exchanges are required to «identify all categories of personally identifiable information and proof of identity» that they make customers provide in order to get access to their platforms. Companies have also been asked to submit copies of their applications for charters or a «BitLicense» that allows them to trade cryptocurrencies.
Among the exchanges that have received these letters are Gemini Trust, iBit, Coinbase GDAX and BitFlyer.