Why New York's Bitcoin Investigation Will Help the Market Grow

April 24, 2018
Updated 9d ago

An investigation into Bitcoin exchanges by the New York attorney general could spark volatility in cryptocurrencies, but that may be "part of the evolution" of digital money, said Lynn Martin, the president and chief operating officer of ICE Data Services.

The attorney general, Eric Schneiderman, announced last week that his office was looking into 13 major Bitcoin exchanges, digging for information on processes they have in place to protect investors. The nascent world of digital trading has struggled with fraud, theft, and technical glitches.

Earlier this year, digital currency exchange Coinbase admitted a bug in its system caused it to accidentally overcharge thousands of investors several times for the same purchase. Additionally, one of India's biggest cryptocurrency exchanges, Coinsecure, reported an employee stole $3 million in bitcoin from the platform.

The New York investigation was not a major concern, said Martin, who added that the the cryptocurrency market was in its “infancy,” and transparency would be important for it to grow.

After a steep drop from enthusiastic highs late last year, Bitcoin has rallied recently. Adam Back, co-founder and CEO of Blockstream, said in an interview with Cheddar that the market was, “reacting to tax day passing." Bitcoin rebounded above $9,000 over the weekend.

For full interview, click here.