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James panzarella buffalo ny1/30/2024 ![]() James in March filed a lawsuit against KuCoin for failing to register as a securities and commodities broker and falsely representing itself as a marketplace, and brought action against CoinEx for failing to register as a securities and commodities broker earlier this winter.FInd a Doctor Bill Pay Patient Portal COVID-19 Donations JOIN OUR TEAM Only then will our residents be equipped to make fully informed and leveled financial decisions." This simple fact calls for a framework to be established which promotes transparency and protections for crypto investors, similar to those which exist for other financial institutions. Furthermore, with people of color investing in the crypto market at higher rates, the potential for financial harm is greater amongst communities of color. said in a statement. “As the chairman of the Committee on Banks in the New York state Senate, it is no mystery to me that regulated financial markets are essential to avoid consumer fraud and conflicts of interest. “As the cryptocurrency industry grows and captures the interest of investors across the state, it is imperative that our constituents are appropriately safeguarded against the threats at hand,” state Sen. Prohibiting referrals from marketplaces to investment services for compensation.Prohibiting brokers from borrowing or lending customer assets.Prohibiting marketplaces and investment advisers from keeping custody of customer funds.Preventing crypto brokers and marketplaces from trading for their own accounts.Preventing common ownership of crypto issuers, marketplaces, brokers and investment advisers and preventing any participant from engaging in more than one of those activities.The bill would stop conflicts of interest in the industry by: “As the financial capital of the world, New York must lead these efforts." “The cryptocurrency industry is in need of regulation and oversight,” state Comptroller Thomas P. If passed and signed into law, the measure would also codify DFS’ authority to oversee licensing of digital assets and license digital asset brokers, marketplaces, investment advisors before conducting business in the state. The bill would permit the state attorney general to enforce the law by issuing subpoenas, impose civil penalties of $10,000 per violation per person or $100,000 per violation per ferm, collect restitution and damages and shut down businesses participating in fraud. Require cryptocurrency promoters to register and report their interest in any issuer whose crypto assets they promoteĬrypto companies are not required to publicly disclose their finances, which inflates prices and prevents investors from knowing the true risk of investing in a cryptocurrency, according to James' office.Require marketplaces to establish and publish listing standards.Provide investors with material information about issuers, including risks and conflict-of-interest disclosures.Undergo mandatory independent auditing and publish audited financial statements.The bill would increase transparency in the industry by requiring: Millions of investors have lost hundreds of billions of dollars in value of cryptocurrency investments because of rampant fraud caused by market manipulation, hacking and opaque business practices, according to the attorney general's office. ![]() The legislation would require crypto companies to make financial statements public, crack down on industry conflicts of interests and impose protections for crypto investors.Ĭrypto platforms would also be required to reimburse customers who are the victims of fraud. These commonsense regulations will bring more transparency and oversight to the industry and strengthen our ability to crack down on those that don’t pay respect to the law.” All investments are regulated to account for every penny of investors’ money - cryptocurrency should be no exception. “Rampant fraud and dysfunction have become the hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion-dollar industry,” James said in a statement Friday. “New York investors should have the peace of mind that there are safeguards in place to protect them and their money. The Crypto Regulation, Protection, Transparency, and Oversight Act would mandate independent public audits of cryptocurrency transfers and prevent people from owning those companies, such as brokerages and tokens, to stop conflicts of interest and embolden the state Department of Financial Services oversight and regulatory power of digital assets, according to the attorney general's office. The cryptocurrency industry has largely remained void of regulations and transparency - leading to crime and fraud. New York Attorney General Letitia James is backing new legislation to change state business law and impose stricter regulations on digital assets like cryptocurrency to crack down on unregistered platforms and strengthen protections for investors in the industry.
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