Jessie Powell, the CEO of U.S.-based cryptocurrency exchange Kraken, has publicly stated his refusal to answer a questionnaire issued by the New York Attorney General’s office. Mr. Powell has described the questionnaire – which was sent to thirteen virtual currency exchanges operating in the United States – as hostile to both cryptocurrencies and the virtual currency sector generally.
Kraken CEO Rejects Questionnaire From New York Regulators
The chief executive officer of major cryptocurrency exchange Kraken, has criticized a questionnaire sent to thirteen cryptocurrency exchanges operating in the United States by the office of the New York Attorney General.
Kraken described the questionnaire for “Virtual Markets Integrity Initiative” as comprising a “tone-deaf response” to the emerging cryptocurrency on the part of New York’s regulators. The company claims to be “happy to help government understand our business” under “ordinary” circumstances, however, describes the questionnaire as being overtly “hostile to crypto,” and indicative of hostility toward the industry on the part of the state of New York generally.
On his private Twitter account, Mr. Powell also described acceptance of the questionnaire as comprising “placative kowtowing.”
Eric Voorhees, the chief executive officer of Shapeshift, thanked Mr. Powell for his comments on Twitter, stating “thank you for taking the ethical stance and speaking up for what’s right. Crypto has brought more transparency to finance and protection to consumers than the last 100 years of bureaucratic nonsense that has spilled from the sewers of New York.”
Office of New York Attorney General Issued Questionnaire to Thirteen Cryptocurrency Exchanges
The so-called questionnaire comprises a 34-point survey requesting that exchanges provide information including that pertaining to their ownership structure, basic operations, know-your-customer (KYC) policies, and anti-money laundering procedures by May 1st.
The questionnaire has been issued to Coinbase, Inc., Gemini Trust Company, Bitflyer USA, Inc., iFinex Inc (Bitfinex), Bitstamp USA Inc., Payward, Inc. (Kraken), Bittrex, Inc., Circle Internet Financial Limited (Poloniex), Binance Limited, Elite Way Development LLC (Tidex), Gate Technology Inc, Itbit Trust Company, and Huobi Global Limited.
New York Attorney General, Eric Schneiderman, claimed that “With cryptocurrency on the rise, consumers in New York and across the country have a right to transparency and accountability when they invest their money. Yet too often, consumers don’t have the basic facts they need to assess the fairness, integrity, and security of these trading platforms” in a press release issued on April 17th. “Our Virtual Markets Integrity Initiative sets out to change that, promoting the accountability and transparency in the virtual currency marketplace that investors and consumers deserve,” Mr. Schneiderman added.
Following Mr. Powell’s rejection of the questionnaire, Amy Spitalnick, a spokeswoman for Eric Schneiderman, described the questionnaire as having requested “very basic information that any credible platform should have on hand and be willing to share with their investors […] Legitimate entities generally like to demonstrate to their investors that their money will be protected.”
How do you feel about the questionnaire issued to cryptocurrency exchanges by the office of the New York Attorney General? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Times of Israel
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Author: Samuel Haig