COINBASE has been the first to respond to the extensive questioning from New York’s Attorney General, Eric Schneiderman.
A total of 13 exchanges were approached by Schneiderman in April with a “Virtual Markets Integrity Initiative Questionnaire”.
The questionnaire covers a wide range of topics related to exchanges, operations, use of trading bots, their terms of service, privacy protocols and their relationship with financial institutions.
Their Chief Legal and compliance officer Mike Lempres gave the official response in a 5 page letter. Here he covers the company’s assets kept on the platform, valuing a total of $150 billion.
The letter also details the precautions taken around cyber-security and customer support with concern placed upon keeping cryptocurrency markets safe and fair.
Mike Lempres has previously applauded the efforts made by Schneiderman stating: “We applaud Eric Schneiderman’s efforts for taking action to bring further transparency to virtual currency markets.”
Coinbase have also stated: “We have established a cybersecurity program and related policies and training, conduct periodic penetration testing and vulnerability assessments, and undertake security risk assessments among myriad other operational and technical safeguards. We operate an active bug bounty program to pay third-party developers for vulnerability tips. We will continue to invest aggressively in industry-leading technology and practices to secure customers’ data and virtual currency assets, even as our investment and commitment to security go far beyond what the law requires.”
The full response has not been released to the public, however this marks an important and responsible move by one of the largest US cryptocurrency exchanges.