New York Attorney General Letitia James has proposed a new state law to tighten rules over cryptocurrency companies, citing “rampant fraud and dysfunction” in the industry. This is the latest move by James, who has been targeting the crypto industry with lawsuits over the past few months.
The proposed regulations include requiring independent public audits of crypto exchanges, banning people from owning both brokerages and tokens to prevent conflicts of interest, and requiring crypto platforms to reimburse customers who are victims of fraud.
Sophisticated Set Of Regulations?
Dubbed the Crypto Regulation, Protection, Transparency, and Oversight (CRPTO), James called her proposal “the strongest and most comprehensive set of regulations on cryptocurrency in the nation.”
The legislation proposed by the Attorney General includes provisions to prevent crypto brokers and marketplaces from trading using their accounts. Additionally, it would prohibit brokers from borrowing or lending assets owned by their customers.
James said in a statement,
Rampant fraud and dysfunction have become the hallmarks of cryptocurrency, and it is time to bring law and order to the multi-billion-dollar industry. New York investors should have the peace of mind that there are safeguards in place to protect them and their money.
According to the report, the proposal will be submitted to state lawmakers for the 2023 legislative session. If adopted, it would also strengthen the authority of the New York State Department of Financial Services to regulate digital assets.
NY Attorney Keen On Crypto Regulation
James has been vocal about overseeing the crypto industry to allegedly prevent abuses. Her lawsuits against KuCoin and CoinEx alleged they failed to register their acti
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Author: Edyme
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