Exchanges Don't Take Enough Action to Prevent Abusive Trading, New York Prosecutor Says
Cryptovest
Published Sep 19, 2018 04:41PM ET
Updated Sep 19, 2018 06:01PM ET
Exchanges Don't Take Enough Action to Prevent Abusive Trading, New York Prosecutor Says
The office of the New York State attorney general submitted a report on Tuesday that highlighted what it perceived as problems that were pervasive in the cryptocurrency exchange ecosystem as a whole. The office’s analysis included ten different exchanges, nine of which explicitly agreed to be probed by the authority as part of its study.
The exchanges that participated with the OAG’s investigation were as follows:
- Bitfinex
- bitFlyer
- Bitstamp
- Bittrex
- Coinbase
- Gemini
- itBit
- Poloniex
- Tidex
The strongest conclusion that the study could draw was that there was a “lack of protection from abusive trading practices.”
“The OAG asked trading platforms to describe what, if any, policies were in place to define, detect, prevent, or penalize suspicious trading activity or market manipulation, and to provide a description of trading behavior that the platform believes constitutes manipulative or abusive activity. While participating platforms expressed their commitment to combating market manipulation, only a few reported having a formal policy it takes, defining the types of conduct the platform believes to be manipulative or abusive, and outlining how such trading behavior is to be detected and penalized,” the attorney general’s office said on this matter.
Digging further in, we notice that the OAG was particularly concerned with the use of trading bots on exchanges, which it considers is not sufficiently restricted to protect customers from wild price swings.
The office looked at what types of orders available on exchanges (such as immediate-or-cancel, maker-or-cancel, good till cancel, or fill-or-kill) then drew the conclusion that they may even cate...
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Written By: Cryptovest
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