The attorney general of New York, Letitia James, has decided to take a critical stance against bitcoin and the rest of the cryptocurrencies in that state, after the volatility experienced in the crypto-asset market in recent weeks.
“There are extreme risks when investing in cryptocurrencies and it is imperative that we act to protect investors’ wallets,” was one of the opinions expressed by the US official on her Twitter account on March 1.
The prosecutor published a document in which it ensures that cryptocurrencies are unstable and that represents a high risk for those who decide to enter the digital asset market . Such conditions, she said, “could result in devastating losses as fast as they can generate profits.”
For the official, the rise in the price of bitcoin makes people believe that they are going to get returns that are not entirely realistic. This would allow scammers to take advantage of that situation.
James took the opportunity to mention the lawsuit that forced at the closing of Coinseed , a cryptocurrency trading platform that was operating illegally and that defrauded thousands of investors nationwide by more than USD 1 million.
Reactions to the words of the prosecutor did not wait. Along those lines, Eric Turner, Research Director at Messari, a New York-based startup providing research on the cryptocurrency market , expressed that the stance taken by James “will scare people rather than genuinely educate them about crypto assets.”
Turner believes that bitcoin and the rest of cryptocurrencies have created It is surrounded by a multimillion dollar industry , which in turn generates many well-paid sources of employment. “If New York continues to treat the industry with unreasonable hostility, it will see all these opportunities bypass that state,” he added.
Prosecutor James looks at the exchanges of bitcoin
James, who is part of the Democratic Party, also pointed in his warning to the exchanges that make life in New York.
“Many operators of virtual currency trading platforms are themselves heavily investing in virtual currencies and operate on their own platforms without supervision ”, he assured.
In this regard, he said that the Crypto assets increase the possibilities for investors to manipulate the market and likewise feed the conflict of interest between the different platforms.
James appealed to brokers, distributors, sellers and investment advisers, on the possible legal and civil consequences that they could face if they do not register when they do business with bitcoin and other cryptocurrencies.
Bitfinex and Tether dispute with New Justice York
Prosecutor Letitia James in her statement also addressed the dispute between the New York justice and the exchange Bitfinex and Tether. This culminated days ago with an agreement in which the defendants must pay a millionaire fine. “We are sending a clear message to the entire industry that either it complies with the rules or we will close it,” added the prosecutor.
Both companies were accused of offering services illegally, covering up operations and lying on the support of the currency anchored to the dollar, as reported by CriptoNoticias.