Cryptocurrencies
CME's Crypto Partners Get Called Out by New York Regulators
- Bitstamp, itBit and Kraken raise red flags on manipulation
- Those exchanges help CME price its Bitcoin futures contracts
Photographer: Balint Porneczi/Bloomberg
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Three of the cryptocurrency exchanges that help power CME Group Inc.’s Bitcoin futures market have raised red flags with New York state regulators.
Two of them, Bitstamp and itBit, have no formal policies for fighting market manipulation, according to report issued Tuesday by New York Attorney General Barbara Underwood. A third -- Kraken, which refused to participate in the attorney general’s review -- has made “alarming” public comments about abusive trading, including that manipulation “doesn’t matter to most crypto traders” even though “scams are rampant.”