A recent report published by the New York Office of the Attorney General (OAG), which claimed several cryptocurrency exchanges it investigated are vulnerable to market manipulation, has drawn backlash from industry players.
In a blog post published Thursday, Coinbase's chief policy officer, Mike Lempres, wrote that the OAG's assertions in the report have led to misrepresentation of the exchange's business in the media.
The OAG wrote in its original report: "Coinbase disclosed that almost 20 percent of executed volume on its platform was attributable to its own trading."
In response, Lempres clarified that Coinbase does not "trade for the benefit of the company on a proprietary basis."
"When Coinbase executes these trades, it does so on behalf of Coinbase Consumer customers, not itself."
Lempres further explained that the 20 percent figure represents consumer-driven volume on Coinbase Consumer, a service that executes users' orders with its own exchange, as oppose to what was described as "self-trading" in the report.
Jesse Powell, the founder of the U.S.-based Kraken exchange, which was named by the OAG as possibly in violation of state law, vented his anger on Twitter, describing the environment in New York generally as "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 wrote.
Echoing that, Shapeshift's Erik Voorhees further tweeted:
"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."
Both Powell and Voorhees have been vocal in criticizing the high regulatory bars imposed by New York as stifling crypto growth in the global financial center.
Voorhees said in May at CoinDesk's Consensus 2018 event in New York:
"Here we are two miles from the Statue of Liberty and you cannot sell CryptoKitties in the state without that license. That's the absurdity of what's happened here."
New York image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
CoinbaseKrakenNew YorkReportsRegulationNew York Attorney General
Analysis: What 2019 Could Bring for Bitcoin
Trading in altcoins was a big part of what made Bitcoin price spike towards the end of 2017. A section of the crypto space argues that while altcoins helped Bitcoin’s market cap swell, they also bro
Bitcoin Cash Going Down as Stellar Warms up
Bitcoin Cash’s market cap has been cut in half since the Nov. 15 hardfork which birthed the Bitcoin ABC and Bitcoin SV chains. Now at a mere $3.5 bln and a unit price of ~$201 as at the time of writ
300k User Data from Chinese Auto Finance Platform Sold For One Bitcoin on Dark Web
It is revealed that 300,000 pieces of user data from a Chinese auto finance platform Jiurong were compromised and priced at one bitcoin on the dark web.
According to the leaked data posted, persona
Heyday of Bitcoin Mining Rigs Business at China’s Huaqiangbei is Over Amid Crypto Market Carnage
Bitcoin price slumped to a 13-month low of about $4,300 on Wednesday, making mining the world’s leading digital currency an unprofitable business. A lot of mall miners, mining rigs dealers and minin
Dialogue with Bitcoin Evangelist in Latin America: RSK Labs CEO Diego on Crypto Industry
Diego Gutierrez is the CEO at Koibanx and president of Bitcoin Argentina NGO. In addition, Diego also serves as the CEO of Rootstock/RSK Labs, a smart contract platform built on top of bitcoin.
China’s Bitcoin Billionaire Zhao Dong : Bitcoin Price to Hit $50,000 in Three Years—Now Is the Time to Buy the Dip
Despite Bitcoin’s latest crash and a real chance that its price will go much lower, Zhao Dong, prominent Chinese OTC trader and founder of Dfund, remains bullish on the the world’s biggest cryptoc
Bitcoin Miners Sold by Kilo in China Amid Cryptocurrency Crash
The leading cryptocurrency bitcoin once fell below $4,300 on the afternoon of November 20 – down more than 17% on a 24-hour basis and hitting a 13-month low since October 2017. Great losses are seen
Xiao Lei: 3 Main Reasons of the “Unreasonable” Bitcoin Price Crash
Cryptocurrency markets experienced a havoc in the past few days. Bitcoin, the uncrowned king in the crypto world, has fell as much as 30% over the past two weeks, while other major tokens are all suff