Trading in digital currency is a trend these days. The number of people investing heavily in Cryptocurrency continues to grow rapidly. However, as crypto trading continues to grow in popularity, so does the risk. Many reports already show that Cryptocurrency is subject to manipulation.
A number of cryptocurrency exchanges lack basic consumer protections and are vulnerable to exploitation by market manipulators, the New York attorney general’s office said in a report Tuesday.
The report, the result of a monthslong investigation, found that many exchanges lack appropriate safeguards, putting consumers at risk.
Market manipulators are still taking advantage of the security loopholes and putting many consumers at risk.
According to Voa News, there is a lack of fairness, openness, and integrity in the crypto market, specifically where people buy and trade currencies like Bitcoins.
The study found that online platforms where virtual currencies such as bitcoin can be bought and sold by individuals operate with lower safeguards than traditional financial markets, are vulnerable to market manipulation and put customer funds at risk.
“As our report details, many virtual currency platforms lack the necessary policies and procedures to ensure the fairness, integrity, and security of their exchanges,” Attorney General Barbara Underwood said in a statement.
Accordingly, these platforms likely have serious security threats that present conflict of interest, like charging big companies hefty rates to list tokens.
That those risks are varied and wide-ranging was perhaps to be expected. That they are not limited to some of, shall we say, the less scrupulous exchanges was perhaps not.
The in-depth look at 13 exchanges, released today, details all the ways in which major exchanges fail to guard their customers against fraud, manipulation, and abuse. It’s not a pretty picture.
Accordingly, many of these exchanges are vulnerable to price manipulation. And something seriously needs to be done to address the issues.
One very important finding from the investigation on crypto currency security is that platforms where investors buy and sell digital currencies have not done enough to protect users.