There’s A Big Problem With Crypto Exchanges, According To NY Attorney General
New York Attorney General, Barbara Underwood has spoken out about a distinct lack of customer care seen within many cryptocurrency exchanges, a statement that very much goes against many exchanges moves towards becoming a safe haven for cryptocurrency investors.
Underwood believes that the nature of exchanges means they do not have the customers best interests at heart and therefore customers are not protected against the threats of the cryptosphere. Moreover, Underwood believes that manipulation is still rife within many exchanges, which in turn is causing further problems elsewhere.
According to The Next Web, Underwood has said:
âMany 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.â
This sentiment is reflected by a recent study into trading platform Robinhood, which is now being accused of ripping off younger and less experienced investors in order to benefit and profit Wall Street level investors that are using the platform. Underwood believes that exchanges are only catering for the needs of the larger firms (that bring more money into the exchanges) and in turn, small time investors are at a disadvantage and are vulnerable to a range of Â unreasonable risks.
Furthermore Underwood has published a report that outlines 8 specific questions that exchanges need to be able to answer in order to be considered safe for use by the general populous. According to The Next Web:
âThe attorney general concludes the report with a list of eight questions that exchanges should be able to confidently answer. These questions concern but are not limited to: security measures to prevent hacking, insurance policies in the event of theft, measures for removing abusive traders, and if the platform is registered under forms of banking regulations.â
Overall, just remember that even when your exchange claims to be safe and secure, it might not be. Ultimately, you are responsible for your own safety and security when dealing in cryptocurrencies. Be aware, trade safe and hopefully you can avoid the problems associated with manipulation and consumer vulnerability.
The Next Web