Insider-trading enforcement innovator Eric Schneiderman may not understand dark pools. But the New York Attorney General definitely doesn’t understand cryptocurrencies, because no one does. And Schneiderman is betting that includes cryptocurrency exchanges themselves.
The attorney general office’s on Tuesday sent a letter—part of an initiative by Mr. Schneiderman to bring clarity to these highly speculative and volatile markets—requesting information from 13 exchanges specializing in bitcoin and other cryptocurrencies, saying investors often don’t have the basic facts needed to protect themselves….
The letter requests information on basic trading rules, fee structures, policies and safeguards to prevent conflicts of interest and fraud, protection of customer assets, and the use of automated programs, or “bots” on the exchanges. The letter acknowledges that some of the questions may have answers the exchanges already provide on their websites.
It asked for the exchanges to respond to its questionnaire in full by May 1. The attorney general’s office plans to publish the information “in a publicly accessible format.”