Last updated on July 15th, 2020 at 01:36 pm
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CFTC; The United States Commodity Future Trading Commission (CFTC) has sent letters to bitcoin exchanges in its ongoing bitcoin price manipulation probe that started at the end of May 2018.
Bitcoin exchanges to hand over trading data to CFTC
The US Regulator, CFTC has demanded four cryptocurrency exchanges viz. Coinbase, Kraken, Bitstamp, and ItBit in the ongoing investigation.
Coinbase which is recently on the struggle to secure all the legal requirements needed for it’s activities faxes yet another backlog. According to Coinmarketcap, Kraken is at 24th position with a 24-hour trading volume of over 54 million while BitStamp ranks at 38th with 28 million daily trading volume and ItBit is at the 62nd spot with $9.6 million daily trading volume.
The aforementioned bitcoin exchanges were asked to hand over their complete trading data in order to help CFTC in their bitcoin manipulation probe.
As per Wall Street Journal, sources close to the matter have disclosed that this remains a constant problem with CME. Last year, when CME launched the bitcoin futures, it asked the exchanges for data to base the bitcoin price for futures trading.
Four crypto exchanges including Kraken, Coinbase, ItBit and Bitstamp were involved. These exchanges refused to comply citing security and privacy as the concerns.
But after CME haulted the trading activities of these exchanges.. They were left with no option but to share data. However, only a little amount of data was shared.
Jesse Powell, the Chief Executive of Kraken recently commented on the market manipulation news:
“If there is any kind of attempted manipulation, whoever is doing it is taking a huge amount of risk for very little possible upside.”
The company behind ItBit exchange, Paxos’ Chief Executive Charles Cascarilla stated,
“We have definitely entered an unknown area where it is clear there is a desire for tightened oversight.”
Privacy and Decentralisation
More so, this calls for the raise in Decentralized Cryptocurrency Exchanges and Privacy Coin. Where the sharing of data is of no use since identities is unknown and untraceable.