Coinbase, one of the biggest cryptocurrency exchange platform in the US has officially responded to New York’s Attorney General Eric Schneiderman’s ongoing inquiry.
Coinbase is a digital currency exchange wallet headquartered in San Francisco, Californa. It is a platform where merchants and consumers can transact with various digital currencies like Bitcoin [BTC], Litecoin [LTC], Ethereum [ETH], etc. The company operates under a New York Department of Financial Services [NYFDS] BitLicense.
Eric Schneiderman’s office launched a fact-finding inquiry into cryptocurrency exchanges in April, sending a Virtual Markets Integrity Initiative Questionnaire to 13 firms, including Coinbase. The inquiry seeks a wide range of information about exchanges, operations, their leadership, funding, terms of service, privacy protocols, relationship with financial institutions and use of trading bots.
Mike Lempres, Coinbase’s Chief Legal, and Compliance Officer gave an official response in a 5-page letter. The letter gives an account of Coinbase’s asset kept on the platform valuing around $150 billion. The firm’s funding is valued at $225 million, with its sound financial position, the number of profits it earns, and personnel level which has over 3000 employees.
The letter also outlines the steps taken around cybersecurity, platform reliability, customer support, and to ensure the fairness of virtual currency markets.
The letter describes Coinbase’s cooperation with law enforcement and regulatory agencies across the globe. It also says Coinbase is a federally regulated money service and has been granted licenses by authorities in 31 states.
Coinbase’s complete response to Schneiderman is to be kept confidential and kept out of the public eye due to privacy and security reasons.
Mike Lempres, Coinbase’s Chief Compliance Officer applauds the efforts stating :
“We applaud Eric Schneiderman’s efforts for taking action to bring further transparency to virtual currency markets.”
Laszlo Kulman, a Twitter user says:
” I thought coinbase working for their customers and if you want to become to the most trusted exchange then trust your customers.”
Rachael Horowitz, the Vice President of Communications at Coinbase says:
“A full response has a bunch of highly confidential information that we are unable to share publicly. Our aim is to be as transparent as we can be in responding to this action publicly so we shared the cover letter.”