US Regulators: Cryptocurrency Exchanges Are Vulnerable to Market Manipulation

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According to a months-long investigation by the New York State Attorney General’s office. The US regulators have warned New York residents who trade in virtual, or cryptocurrency that cryptocurrency exchanges may be vulnerable to hacking and price manipulation due to lack of basic consumer protections.

According to the report, the exchanges themselves are not doing enough to protect their customers. Major exchanges fail to guard their customers against fraud, manipulation, and abuse.  Consumers and investors deserve to understand how their financial service providers operate, protect customer funds, and ensure the integrity of transactions.

The questionnaire originally went out to 13 crypto exchanges. Ten voluntarily complied with the study, but four did not respond, arguing they did not serve customers in New York.

But, after investigating three of those non-responders — Kraken, Binance, and Gate.io — the New York Attorney General’s office “referred Binance, Gate.io, and Kraken to the Department of Financial Services for potential violation of New York’s virtual currency...

Read More: https://news.bitzamp.com/us-regulators-cryptocurrency-exchanges-are-vulnerable-to-market-manipulation/