The Attorney General’s statement
In a letter that was addressed to 13 cryptocurrency exchanges, Eric Schneiderman’s New York AG office asked for the companies to provide information on a wide range of topics relating to the manner in which their platforms operate. The letter said in part: “Representing a technological advance, a medium of exchange, and an investment opportunity all at once, virtual currencies are inspiring innovators, entrepreneurs, and investors—and are fueling an increasingly diverse ecosystem of companies and applications. But virtual currency is also a highly speculative sector, featuring significant volatility, instability, and risk. Moreover, published reports indicate the sector has attracted fraudsters, market manipulators, and thieves.”
Enclosed with the letter was a 34 point questionnaire. The exchanges were asked to complete it in full by May 1. Some of the questions are quite specific and in-depth. They concern procedures and policies relating to such topics as: trading, banking relationships, and insurance. The AG’s office said that it would publish the information in a publicly accessible format to help customers of exchanges.
Schneiderman claimed that consumers often don’t have access to even basic facts about how the exchanges operate. He said that the questionnaire was part of a broader policy intended to protect investors and other customers of the exchanges.
Schneiderman said: “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.”
News of questionnaire causes sharp bitcoin price decline
As discussed in a recent Digital Journal article , the price of bitcoin had recovered to well above the $8,000 level and the price was still above that level at the opening today. The recovery was from an earlier low well below $7,000.
At the opening today the price was $8,051.35. The high so far today was $8,151.10 significantly above the $8,000 level. However, the price dipped significantly below that level to $7,834 the lowest level so far today.. As of 20:20 UTC the price was $7,895.02. The price is quite volatile. You can check the present price at Coindesk.
It remains to be seen whether this is a temporary setback in a significant bullish recovery or if the price will continue downward. We should know within the next 24 hours or so. As illustrated in the appended video some observers have thought that the bitcoin market was now in a bullish period.
