Jimmy Song sat down for a discussion with Tone Yays on his popular YouTube channel. They spoke about the recent report released by the New York Attorney General, Barbara Underwood where she called out three big cryptocurrency exchanges for possible illicit operations in NY.
The report shows that major cryptocurrency exchanges are exposed to price manipulation. The report also found that three exchanges – Kraken, Binance, and Gate.io – were particularly problematic. These exchanges have all been reported to the New York Department of Financial Services (NYDFS) for a further investigation into how they could be violating US law.
Earlier this year, we sent letters to major cryptocurrency trading platforms requesting key information on how they operate.
— NY AG Underwood (@NewYorkStateAG) September 18, 2018
On this report, Vays propagated that it was unusual to see Bitfinex out of this list. He believes that it is important that a government entity looks into the operations of the platform. He said: “I’m very surprised that Bitfinex is not named in this report. I feel that Bitfinex really needs some government entity and go in and take a look at them.”
Vays also stated that Binance being reported by the Attorney General did not come as a shock to him, as he has always carried the view that Binance is a scam due to the way it was funded. On the other hand, Bitcoin maximalists see Kraken as a legitimate cryptocurrency exchange and were caught in the conundrum due to mere bad luck. He stated:
“I’m not surprised by any of this and there is a reason why the government is looking into this. Because not for the sake of the consumers. I mean the government does not care that much about the consumers. The government just does not want to deal with the backlash of consumers. You know calling and complaining to them.”
Notably, the US Security and Exchange Commision [SEC] rejected several Bitcoin ETFs, such as the Winklevoss ETF that was submitted by Tyler and Cameron Winklevoss. However, things might be looking up. VanEck SolidX Bitcoin ETF is put on the waiting list by SEC, which is expected to be approved by the regulatory body in its final decision. Vays says that the government will only approve the ETF after knowing the exchanges and their operations better.