US based cryptocurrency exchange will not abide to New York’s information inquiry
Earlier the Virtual Market Integrity Initiative was announced by New York Attorney General Eric Schneiderman. A number of digital currency exchanges came under the scrutiny of the initiative. Kraken, a US based digital currency exchange was amongst the many.
Kraken, in a recent statement stated that they will not comply with the inquiry request. Kraken co-founder Jesse Powell made it evident of twitter. He stated, "The resource diversion for this production is massive. This is going to completely blow up our roadmap!”.
Powell further added, “Then I realized we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet," Powell said. "Ordinarily, we're happy to help government understand our business, however, this is not the way to go about it.”
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. https://t.co/sta9VuXPK1 pic.twitter.com/4Jg66bia1I
— Jesse Powell (@jespow) 18 April 2018
Various cryptocurrency exchange companies are not operational in New York as they require “BitLicense” from New York State Department of Financial Services.
Furthermore, Amy Spitalnick, spokeswoman for New York Attorney General Eric Schneiderman stated, “Legitimate entities generally like to demonstrate to their investors that their money will be protected.” She also stated, “This is very basic information that any credible platform should have on hand and be willing to share with their investors.”
Schneiderman's office had asked the exchanges under inquiry to complete a questionnaire by May 1. The areas covered in the questionnaire were relating to ownership, fees, trading suspensions and money laundering.
Powell had a strong expression in context with the inquiry. He stated that if the attorney general's office did want to talk, "ask us for a phone call, fly yourself out to San Francisco, invite us for lunch at your office. We can tell you which industry groups to join and where to begin your research.”
Powell also added, “Kraken left New York because New York is hostile to crypto and this 'questionnaire' we received today proves that New York is not only hostile to crypto, it is hostile to business.”
According to CryptoCompare, Kraken ranks fifth by the market share for US dollar bitcoin trading.
Image via Kraken