Ethfinex co-founder says other exchanges with U.S. operations will face regulator scrutiny

Crypto exchange Bitfinex has been gripped by New York Attorney General's court order, but its partner exchange Ethfinex, which facilitates trading of ERC-20 tokens, said Bitfinex won't be the only exchange caught in the regulatory cross-hairs.

“At the end of the day, yes I do think although Bitfinex is in the headlines right now, there will be others and I think probably the level of scrutiny Bitfinex gets is the same as what other exchanges, at least in the U.S. or with any U.S. nexus, are getting,” said Ethfinex co-founder Will Harborne.

Harborne contended that regulators are making something of a statement by going after Bitfinex, and that other exchanges can expect similar treatment if their business activities are viewed as concerning by regulators acting without definitive guidance. To be clear, Harbone isn't suggesting that other exchanges will face scrutiny for the same reasons as Bitfinex inasmuch that other exchanges will be at the mercy of regulators' concerns as they hash out what is acceptable and what isn't — and who should have authority over the nascent market.