On September 19, the newly appointed Attorney General of New York Barbara Underwood released a report highlighting the integrity of thirteen crypto exchanges. In addition, the report revealed that three of the thirteen crypto exchanges might be violating New York’s regulations.
In order to collate the report, the OAG had asked the exchanges to divulge information relating to their business models. A total of ten exchanges acknowledged this request while Gate.io and Binance refused to participate quietly. Unlike this two, Kraken called out the OAG, claiming that it is not under the body’s jurisdiction.
Kraken Vs. New York’s Regulators
Kraken is one of the many crypto exchanges that left New York after the state had adopted the controversial BitLicense. At the time, Kraken had likened the regulatory framework to a foul and cruel beast with big and nasty teeth. However, the Attorney General is insisting that the Kraken is still operating in New York illegally.
As a result, the OAG has referred Kraken and the two other crypto exchange that refused its inquest to the state’s Department of Financial Services (DFS). Since the three crypto exchanges do not have a bitLicense, they are not allowed to accept New York traders.
Few hours after the report was released, Kraken’s CEO took to Twitter to lay bare his thoughts on the issue. In the tweet, Jesse Powell wittingly compared one of the most influential regulatory body in the world to an abusive ex. However, this is not surprising as Powell has always been vocal about his stance on the OAG’s inquiry.
NY is that abusive, controlling ex you broke up with 3 years ago but they keep stalking you, throwing shade on your new relationships, unable to accept that you have happily moved on and are better off without them. #getoverit https://t.co/DC5S1WyRnp
— Jesse Powell (@jespow) September 19, 2018
In a previous tweet, Powell called OAG’s inquiry an insult to crypto exchanges. He went on to criticize other crypto exchanges that had agreed to participate in the OAG’s report.