Home / News / Cryptos Mixed as New York AG Office Calls Exchanges “Vulnerable”

Cryptos Mixed as New York AG Office Calls Exchanges “Vulnerable”

Investing.com – Cryptocurrencies were mixed on Wednesday, as the New York State Attorney General’s office said the digital currency market is vulnerable to manipulation.

Bitcoin inched down 0.38% to $6,301.80 on the Bitfinex exchange, as of 8:44 AM ET (12:44 GMT).

Cryptocurrencies overall were slightly lower with the coin market cap of total market capitalization at $196 billion at the time of writing compared to $197 billion on Tuesday.

Ethereum,or Ether, the second biggest alternative currency by market cap, fell 0.68% to $206.50. XRP, the third largest virtual currency, was up 3.64% to $0.31754 and Litecoin was at $52.803, down 1.23%.

Virtual coin exchanges are vulnerable to market manipulation and lack consumer protections, according to a reports by the New York State Attorney General’s office.

The 32-page report alleges that exchanges are not doing much to protect investors, according to the report.

“The industry has yet to implement serious market surveillance capacities, akin to those of traditional trading venues, to detect and punish suspicious trading activity,” the report stated.

In other news, a group of banks and major trading firms are launching the first blockchain-based platform to finance commodities trading.

The venture, which includes BNP Paribas (PA:BNPP), Citi, ING and MUFG Bank, will be called komgo SA and is based in Geneva. It is expected to go live later in the year and will allow traders to use a digital letter of credit instead of using paperwork, speeding up the transaction process.

“The launch of komgo SA highlights a shared vision for industry innovation and underlines the ongoing commitment among members to build a truly open and more efficient network within commodity trading” said Souleima Baddi, Chief Executive Officer of komgo SA.

The company is expected to first use the technology for energy trading, then widen to agriculture and metals.

Leave a Reply

%d bloggers like this: