The New York Office of the Attorney General’s (OAG) new report is sparking debate.
In fact, the report states that several crypto exchanges exhibit distinct vulnerabilities open to market manipulation.
Coinbase on OAG Report
For example, Coinbase published a new blog post on Thursday.
In the post, Mike Lempres, the Chief Policy Officer of Coinbase expressed how the assertions of the OAG has led to their exchange’s misrepresentation in the media.
According to the OAG, “Coinbase disclosed that almost 20 percent of executed volume on its platform was attributable to its own trading.”
However, in response to the statement, Lempres said that Coinbase does not “trade for the benefit of the company on a proprietary basis” as the OAG suggests. “When Coinbase executes these trades, it does so on behalf of Coinbase Consumer customers, not itself.”
Furthermore, he said that the 20 % figure represent the consumer-driven volume on Coinbase Consumer. The latter is a service that executes the orders of the users with its own exchange. This is in direct contrast to what the OAG report suggests is “self-trading.”
Kraken’s response to the Report
Jesse Powell is the founder of the Kraken exchange based in the US. The OAG named the exchange in possible violation of the state law. Powell took to Twitter and said that the environment in New York is generally “abusive.”
“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,” he said.
Moreover, Erik Voorhees of Shapeshift echoed his thoughts regarding the OAG report:
“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.”
Additionally, Powell and Voorhees both criticized the strenuous regulations imposed in New York. They believe these strict rules, like the ones proposed by the OAG, stifle crypto growth in the global financial center.
Want the latest crypto news? Join our Telegram Channel