Crowd recoils as NY regulators cry crypto manipulation

A cryptocurrency is a virtual currency designed to work as a medium of exchange that uses cryptography to secure and verify transactions. Due to its relatively recent origins, people tend to question and doubt the credible, secure and accessible aspects of the new altcoins on the market. Various social media platforms like Twitter and Linkedin are serving as a platform for the public to make their fear and anxiety on the newly arising age of a digital transactions heard.

Underwood highlights both sides of cryptocurrencies

In a recent report published by the New York State Department of Financial Services Attorney General, Barbara Underwood states the views of her office from various angles of perception. Barbara claims that she has analysed the topic in a stand free of regulatory angle and hence put forth both the pros and cons of the digital world of currency so as to make the people aware of the benefits and risks they are taking whilst using this form of currency. The pros of such a currency in circulation is the ease with which online transactions can be made. They can easily be made accessible and also help save the headache of account to account transaction requisites everytime they purchase something through the internet. Several people have been eagerly anticipating this report and how it portrays the various obstacles faced by modern digital cryptocurrencies. The report mainly states three different speed bumps faced by the industry. They include varied mindsets of the people, questionable security, and risks of unnecessary exploitation. The report also honorably mentioned San Francisco based exchanges like Kraken, Binance and Gate.io.

Kraken unleashes its golden tongue via twitter

The report took aim at Kraken stating ‘The OAG could not review the practices and procedures of non-participating platforms (Binance, Gate.io, Huobi, and Kraken) concerning manipulative or abusive trading. However, the Kraken platform’s public response is alarming. In announcing the company’s decision not to participate in the Initiative, Kraken declared that market manipulation ‘doesn’t matter to most crypto traders,’ even while admitting that ‘scams are rampant” in the industry.’  Unlike the Binance and Gate.io exchanges, Kraken CEO Jesse Powell responded to the report ostentiating his witty criticism. He tweeted that “NY is that abusive controlling ex that you broke up with three years ago but they keep stalking you, throwing shade on your new relationships, unable to accept that you have happily moved on and after better off without them.”

NY is that abusive, controlling ex you broke up with 3 years ago but they keep stalking you, throwing shade on your new relationships, unable to accept that you have happily moved on and are better off without them. #getoverit https://t.co/DC5S1WyRnp

— Jesse Powell (@jespow) September 19, 2018

This tweet spread like fire across the digital networks and was supported by many tweets from across the world. Many other official comments stated that the report was highly unprofessional. Kraken’s employees did not welcome the report with warmth. Another hit for Underwood was from Erik Voorhes who backed Jesse’s statement stating his view on the topic.  He stated that as New York was at the centre of global finance, it had to change its outlook on cryptocurrencies soon. This response from Kraken was well anticipated. Kraken continued on Twitter that it objected “to the highly unprofessional/malicious implication that because we did not respond to the voluntary information request we *might* be operating illegally. We told you we don’t operate in NY. AG trying cases in court of public opinion now.”

And those kinds of people never seem to realize their behavior is what led to the breakup… NY is going to lose its position at the head of global finance if it doesn't change soon. Keep up the good work @jespow https://t.co/74CVAfivis

— Erik Voorhees (@ErikVoorhees) September 19, 2018

Coinbase rejects involvement in bitcoin trading

Coinbase Chief Policy Officer, Mike Lempres, came out into the limelight correcting the misinterpreted statical data that has been published on the crypto currency by the New York Regulators. The report mentioned that coinbase trading involved trillions of dollars but many did not address this as a legal issue. Lempres stated in the report by Medium Post that the company aimed at becoming the most trusted exchange to buy, store and exchange cryptocurrency. Hence they mentioned that the company would never sacrifice the security of its customers under any circumstances. Coinbase disclosed that almost 20 percent of executed volume on its platform was attributable to its own trading. Thus the report was viewed as an unprofessional one and its claims had received mass recoil from the crowd. Hence, NY Regulators would be more considerate in releasing another report on the topic.

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