Crypto Exchanges Face Probe by New York Attorney General

• N.Y. AG office seeks ownership, operations, anti-fraud information • The initiative could pull crypto exchanges further into mainstream of financial services disclosures

The New York Attorney General’s inquiries into 13 virtual currency exchanges may serve to pull the industry further into the mainstream.

N.Y. Attorney General Eric Schneiderman’s so-called Virtual Markets Integrity Initiative, announced April 17, is yet another signal that cryptocurrency exchanges will be expected “to operate more like traditional financial intermediaries with controls and practices designed to protect consumers and ensure fair trading,” Jason Somensatto, counsel for Orrick in Washington, told Bloomberg Law.

The probe could position ...