Coinbase, the U.S.-based cryptocurrency trade startup, has publicly shared a part of its response to New York Legal professional Common Eric Schneiderman’s ongoing inquiry.
“We applaud the [Office of the Attorney General] for taking motion to deliver additional transparency to the digital forex markets,” Coinbase’s chief authorized and threat officer Mike Lempres wrote in a five-page letter.
Schneiderman’s workplace launched a “fact-finding inquiry” into cryptocurrency exchanges in April, sending an in depth questionnaire to 13 companies, together with Coinbase. The inquiry seeks a variety of details about exchanges’ operations, their management, funding, phrases of service, privateness protocols, relationships with different monetary establishments and use of buying and selling “bots.”
Within the public model of Coinbase’s reply, Lempres addresses the belongings saved on Coinbase’s platform ($150 billion in complete), the agency’s funding ($225 million thus far), its monetary place (“a worthwhile and self-sustaining enterprise”), and its personnel ranges (over 300 staff, 1,000 complete while you think about contractors).
The letter describes Coinbase’s cooperation with regulation enforcement and regulatory companies throughout the globe, its “state-of-the-art” cybersecurity program, and its current methods upgrades, which Lempres says enabled the platform to attain 99.99% uptime in April.
It additionally says Coinbase is a federally regulated cash service enterprise and has been granted licenses by regulatory authorities in 31 states, together with New York’s BitLicense. The letter notes that this controversial license includes “appreciable regulatory oversight.”
But Coinbase’s full response to Schneiderman’s request will probably stay out of the general public eye, per a request from the startup.
Lempres requested for “confidential therapy” for the total response, which the trade is transmitting “by way of an encrypted end-to-end safe file trade service in keeping with our safety protocol.”
Rachael Horowitz, Coinbase’s vice chairman of communications, later instructed CoinDesk by way of e mail:
“That full response has a bunch of extremely confidential info that we’re unable to share publicly. Our intention is to be as clear as we will in responding to this motion publicly so we shared the duvet letter.”
Most exchanges CoinDesk contacted welcomed the New York Legal professional Common’s inquiry, however Kraken, an trade that left New York as a result of BitLicense, pointedly refused to cooperate.
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