NY OAG 'Virtual Markets'* investigation :: Key Finding #2:
Trading Platforms Have Yet to Implement Serious Efforts to Impede Abusive Trading Activity. Though some virtual currency platforms have taken steps to police the fairness of their platforms and safeguard the integrity of their exchange, others have not. Platforms lack robust real-time and historical market surveillance capabilities, like those found in traditional trading venues, to identify and stop suspicious trading patterns. There is no mechanism for analyzing suspicious trading strategies across multiple platforms. Few platforms seriously restrict or even monitor the operation of "bots" or automated algorithmic trading on their venue. Indeed, certain trading platforms deny any responsibility for stopping traders from artificially affecting prices. Those factors, coupled with the concentration of virtual currency in the hands of a relatively small number of major traders, leave the platforms highly susceptible to abuse. Only a small number of platforms have taken meaningful steps to lessen those risks.
Under what pretense are any of these aspects 'abusive'? Seems like they wish to be gratuitously prohibitive of legitimate trading patterns.
What am I missing here?
* What a stupid characterization. There is nothing virtual about these markets. Although they trade in virtual assets, the markets themselves are very much real.
edit:
Trading platforms without an effective system for verifying and monitoring the identity and location of customers cannot block unauthorized access or ensure the fairness and integrity of their marketplace.
What the hell does
identity and location of customers have to do with
fairness and integrity?
edit 2:
In contrast, virtual asset trading platforms are not currently registered as trading venues under federal securities laws. Further, customers access virtual asset trading platforms directly, submitting orders themselves. Trading platforms claim that the ability to freely access their venues benefits customers. This freedom, however, requires everyday customers to understand not only how each trading platform operates as a venue of exchange (and to understand the differences among platforms), but also to make judgments about how to monitor quickly-moving prices, select appropriate order types, place trades, and accurately monitor performance, without guidance from a professional with knowledge and experience.
editorial: No pinstriped bandits required!? OhTheHugeManatee.jpg
edit 3:
The use and extent of insurance in connection with the business of holding, exchanging, or transacting in virtual currencies is not well understood.
Egregious misspelling unbecoming of an official state agency report.
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