Crypto currency exchanges may not be as safe as we think at first glance. According to a report published by the New York Chief Public Prosecutor, most of the transactions do not have basic consumer protection standards, which makes consumers open to manipulation.
“Most of the digital currency platforms lack the necessary procedures and arrangements to provide security, justice and honesty.” he said. “Many platforms serve professional, automated traders with special prices and other privileges, and seem to leave normal users in disadvantage.”
As emphasized by The Wall Street Journal, the Chief Public Prosecutor’s report “measures to protect consumer funds seem to be limited or exist.” he says.
For digital assets, it seems that there will be no control with standardized methods. “This makes it impossible or difficult to approve of platforms that their customers manage their assets with responsibility.”
Thirteen platforms participated in the study by the Chief Public Prosecutor’s office to examine how they provided their security, and nine were found appropriate. These are: Bitfinex, Bittrex, Coinbase, Gemini Trust Company, ITBit, Poloniex, Tidex, and HBUS.
“Four platforms; Binance Ltd., Gate.io (operated by Gate Tech. Inc.), Huobi Global Ltd. and Kraken (operated by Payward Inc), they did not participate in the research by stating that they did not allow operations from New York.”
The Chief Public Prosecutor summarized the list with eight questions that the platforms can easily answer. Although these questions are not limited to these, they contain the following; Safety measures against hacking, theft policy in the state of theft, prevention of abuse users, whether the platform is suitable for the banking regulation.
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