The new inquiry launched into cryptocurrency exchanges by the New York Attorney General Schneiderman has been receiving a lot of backlash from the exchanges the letter was sent out to. The CEO and Co-Founder of Kraken, Jesse Powell was the first one to talk about the inquiry letter. Now, the CEO of ShapeShift, one of the leading cryptocurrency exchange platforms around the globe, Erik Voorhees has also shown his disapproval of the letter.
The NY Attorney General recently sent an inquiry letter to 13 cryptocurrency exchanges as a Virtual Markets Integrity Initiative in order to improve the transparency and accountability of cryptocurrency platforms to protect the virtual investors.
The letter was sent to top exchanges such as Coinbase, Gemini, Bitfinex, Poloniex and Binance. The inquiry has questions regarding the ownership and control, basic operations and fees, trading policies and procedures, outages and other suspensions of trading, internal controls, privacy and money laundering, protection against risks to customer funds and written materials such as current terms and conditions.
The CEO of Kraken openly stood against the inquiry saying that the inquiry is not only hostile to cryptocurrencies but also to hostile to business. Jesse adds that moving out of New York three years ago was a right decision for Kraken and its roadmap.
Jesse Powell tweets:
“Somebody has to say what everybody’s actually thinking about the NYAG’s inquiry. The placative kowtowing toward this kind of abuse sends the message that it’s ok. It’s not ok. It’s insulting.”
To which, the CEO of ShapeShift, Erik Voorhees says,
“Jesse – thank you for taking the ethical stance and speaking up for what’s right. Crypto has brought more transparency to finance and protection to consumers than the last 100 years of bureaucratic nonsense that has spilled from the sewers of New York.”
SchidMarx, a Twitterati says:
“For NY, it’s the comfort and safety of “what has always been”. They don’t want anything upsetting their cushy and corrupt system. Transparency leads to accountability, hence the stalling tactics (inquiries, subpoenas, etc). The tipping point is coming.”
Kevin Thompson, a start-up network marketer says:
“Schneiderman is a troll. AG in NY stands for ‘Aspiring Governor.’ He’s not trying to protect consumers, he’s newsjacking on blockchain’s popularity.”