- New legislation will be introduced for this
- New Law Will Prevent Creators of Crypto Assets from Owning Crypto Platforms
- Companies will conduct a public and independent audit
New York State Attorney General Letitia James continues take measures to regulate the cryptocurrency industry. On Friday, May 5, she proposed a law that would force companies to return money to customers who have been victims of various kinds of fraud. She stated:
“My office represents the leading legislation in the US to increase regulation of the cryptocurrency industry. For a long time, fraud in the industry resulted in investors losing billions of dollars, and it was mostly low-income investors who suffered.”
The bill would prohibit firms from borrowing investors’ assets. In addition, he will require cryptocurrency firms to return money to customers who have been victims of fraud, as banks do. Also, according to this law, the office of the Attorney General will receive more powers to ensure tighter regulation of the industry and “force” to conduct an independent and public audit of crypto companies.
The prosecutor stated:
“We offer reasonable measures to protect investors and stop the fraud and dysfunction that have become the hallmarks of cryptocurrencies. Banks and other financial services are regulated. The cryptocurrency industry should also be regulated.”
Letitia James is actively trying to increase the oversight of cryptocurrency companies. Earlier this year, she sued crypto exchanges CoinEx and KuCoin, as well as former Celsius CEO Alex Mashinsky. She recently reported that Alex was cheating investors about the fortune of a crypto lender.
