For most people, the world of cryptocurrencies remains largely opaque.
Now, a first-of-its-kind investigation aims to add transparency and accountability to the industry.
The New York Attorney General is looking at the trading practices of 13 cryptocurrency exchanges.
But how do crypto traders and the companies that use virtual money feel about the scrutiny?
Nick Harper reports from New York.
IN: "That'll be..."
OUT: SOC
DUR: 2:14
AIR: http://www.fsnradionews.com/feeds/0511crypto-nh-air.mp3
ARN: http://www.fsnradionews.com/feeds/0511crypto-nh-arn.mp3
FM4: http://www.fsnradionews.com/feeds/0511crypto-nh-fm4.mp3
GENERIC: http://www.fsnradionews.com/feeds/0511crypto-nh-gen.mp3
ICRT: http://www.fsnradionews.com/feeds/0511crypto-nh-icrt.mp3
NIGERIA: http://www.fsnradionews.com/feeds/0511crypto-nh-von.mp3
938LIVE: http://www.fsnradionews.com/feeds/0511crypto-nh-938.mp3
RNZ: http://www.fsnradionews.com/feeds/0511crypto-nh-rnz.mp3
VATICAN: http://www.fsnradionews.com/feeds/0511crypto-nh-vat.mp3
ZIZ: http://www.fsnradionews.com/feeds/0511crypto-nh-ziz.mp3
SABC: http://www.fsnradionews.com/feeds/0511crypto-nh-sabc.mp3
- upsound - "That'll be $5 dollars please."
TAKE VO
At this ice cream sandwich shop there's nothing frozen about the assets.
Embracing technology, Melt Bakery has been accepting Bitcoin for the last four years.
Business is brisk - even if virtual currency is still not the preferred method of payment.
SOT - Julian Plyter, Founder, Melt Bakery: "We've done about 80 transactions I think since we started it in 2014, taking Bitcoin."
TAKE VO
Bitcoin is one of the currencies bought and sold on online trading platforms, or exchanges.
TAKE VO
The New York Attorney General's office is now looking at 13 of these exchanges, sending them a 34-part questionnaire asking about everything from fees to trading policies and money laundering safeguards.
SOT - David Drake, LDJ Capital: "This industry has been opaque, there's no accountability, there's no governance, or counting - it's a mess."
TAKE VO
David Drake has worked with 40 cryptocurrency companies with a combined market value of almost $30bn.
He feels the inquiry should really target the process of raising capital for new virtual currencies, known as Initial Coin Offerings. Yet, he says a spotlight on exchanges still sends the right message.
SOT - David Drake, LDJ Capital: "It's necessary to show everybody else that there are consequences and people will be knocking on your door to see what's going on, and making sure that you do fair trades with your clients."
TAKE VO
Investigators argue more transparency and regulation would lend credibility to crypto.
But some experts fear this inquiry could hurt long-term growth.
SOT - Chad Arroyo, Chief Marketing Officer, Seven Stars Cloud: "It is very concerning because I think New York is such a vibrant environment as it relates to financial technology, clearly we have the big banks here. I just wish there was a closer relationship and not so much resistance to enabling and empowering this industry."
TAKE VO
In spite of the inquiry, Melt Bakery has no plans to put Bitcoin payments on ice.
SOT - Julian Plyter, Founder, Melt Bakery: "Well I think it's good business for any person to take money from people in any way they wish to give it to you."
SOC
Now, a first-of-its-kind investigation aims to add transparency and accountability to the industry.
The New York Attorney General is looking at the trading practices of 13 cryptocurrency exchanges.
But how do crypto traders and the companies that use virtual money feel about the scrutiny?
Nick Harper reports from New York.
IN: "That'll be..."
OUT: SOC
DUR: 2:14
AIR: http://www.fsnradionews.com/feeds/0511crypto-nh-air.mp3
ARN: http://www.fsnradionews.com/feeds/0511crypto-nh-arn.mp3
FM4: http://www.fsnradionews.com/feeds/0511crypto-nh-fm4.mp3
GENERIC: http://www.fsnradionews.com/feeds/0511crypto-nh-gen.mp3
ICRT: http://www.fsnradionews.com/feeds/0511crypto-nh-icrt.mp3
NIGERIA: http://www.fsnradionews.com/feeds/0511crypto-nh-von.mp3
938LIVE: http://www.fsnradionews.com/feeds/0511crypto-nh-938.mp3
RNZ: http://www.fsnradionews.com/feeds/0511crypto-nh-rnz.mp3
VATICAN: http://www.fsnradionews.com/feeds/0511crypto-nh-vat.mp3
ZIZ: http://www.fsnradionews.com/feeds/0511crypto-nh-ziz.mp3
SABC: http://www.fsnradionews.com/feeds/0511crypto-nh-sabc.mp3
- upsound - "That'll be $5 dollars please."
TAKE VO
At this ice cream sandwich shop there's nothing frozen about the assets.
Embracing technology, Melt Bakery has been accepting Bitcoin for the last four years.
Business is brisk - even if virtual currency is still not the preferred method of payment.
SOT - Julian Plyter, Founder, Melt Bakery: "We've done about 80 transactions I think since we started it in 2014, taking Bitcoin."
TAKE VO
Bitcoin is one of the currencies bought and sold on online trading platforms, or exchanges.
TAKE VO
The New York Attorney General's office is now looking at 13 of these exchanges, sending them a 34-part questionnaire asking about everything from fees to trading policies and money laundering safeguards.
SOT - David Drake, LDJ Capital: "This industry has been opaque, there's no accountability, there's no governance, or counting - it's a mess."
TAKE VO
David Drake has worked with 40 cryptocurrency companies with a combined market value of almost $30bn.
He feels the inquiry should really target the process of raising capital for new virtual currencies, known as Initial Coin Offerings. Yet, he says a spotlight on exchanges still sends the right message.
SOT - David Drake, LDJ Capital: "It's necessary to show everybody else that there are consequences and people will be knocking on your door to see what's going on, and making sure that you do fair trades with your clients."
TAKE VO
Investigators argue more transparency and regulation would lend credibility to crypto.
But some experts fear this inquiry could hurt long-term growth.
SOT - Chad Arroyo, Chief Marketing Officer, Seven Stars Cloud: "It is very concerning because I think New York is such a vibrant environment as it relates to financial technology, clearly we have the big banks here. I just wish there was a closer relationship and not so much resistance to enabling and empowering this industry."
TAKE VO
In spite of the inquiry, Melt Bakery has no plans to put Bitcoin payments on ice.
SOT - Julian Plyter, Founder, Melt Bakery: "Well I think it's good business for any person to take money from people in any way they wish to give it to you."
SOC
ENDS