- There will be new legislation
- The new law will not allow crypto-asset creators to own crypto-platforms
- Companies will have public and independent audits
New York State Attorney General Letitia James continues to take steps to regulate the cryptocurrency industry.
On Friday, May 5, she proposed a law that would force companies to refund customers who were victims of all kinds of fraud. She stated:
“My office represents leading legislation in the United States to strengthen regulation of the cryptocurrency industry.
For a long time, fraud in the industry has caused investors to lose billions of dollars, and mostly low-income investors have suffered.”
The bill would prohibit firms from borrowing investors’ assets. In addition, it will require cryptocurrency firms to return money to customers who have been victims of fraud, as banks do.
The law would also give the attorney general’s office more authority to enforce stricter regulation of the industry and “force” independent and public audits of cryptocurrency companies.
The attorney general said:
“We suggest reasonable measures to protect investors and crack down on the fraud and disfunction that have become the hallmarks of cryptocurrency.
Banks and other financial services are regulated by. The cryptocurrency industry should also be regulated.”
Letitia James is actively trying to increase oversight of cryptocurrency companies. Earlier this year, she sued crypto exchanges CoinEx and KuCoin, as well as former Celsius CEO Alex Maszynski.
She recently reported that Alex was defrauding investors, regarding the state of the cryptocurrency lender.
She reported that Alex was defrauding investors, regarding the state of the cryptocurrency lender.