Binance and Kraken May Be Operating Illegally in NY State

According to the Attorney General of New York, three crypto exchanges namely, Binance, Kraken, and, may be in violation of digital currency regulations in the state.

Binance, Kraken, Under the Gun

A new report by the Virtual Markets Integrity Initiative by the New York’s Office of the Attorney General reveals that three cryptocurrency exchanges, namely Binance,, and Kraken, have been referred to the Department of Financial Services for potential violation of the existing regulations governing virtual currencies.

As the Bitcoinist reported on the matter, the report finds that a many of the platforms are lacking the required policies to guarantee the financial safety of their retail customers:

Many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity, and security of their exchanges. […] Most platforms seem to cater to professional, automated traders, with many venues offering special pricing and other features to such traders, leaving retail customers at a disadvantage.

‘Insulting’ Request

In April, now former New York Attorney General Eric Schneiderman prompted 13 cryptocurrency exchanges to provide information on their operations, safeguards against market manipulation and fraud, internal control, and so forth…

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