A Home committee has despatched letters to 4 U.S. federal businesses and 5 cryptocurrency exchanges requesting knowledge regarding what they’re doing to fight cryptocurrency fraud and scams.
Congress Questions Regulators and Crypto Exchanges
The Home Committee on Oversight and Reform despatched letters to 4 U.S. federal businesses and 5 crypto exchanges on Tuesday in a trial to limit crypto-related fraud and scams.
The 4 businesses sq. measure the Division of the Treasury, the Federal Commerce Fee (FTC), the Commodity Futures commercialism Fee (CFTC), and due to this fact the Securities and Alternate Fee (SEC). The 5 crypto commercialism platforms sq. measure Coinbase, FTX US, Binance US, Kraken, and Kucoin.
The letters request “data in regards to the steps they’re taking to fight cryptocurrency-related fraud and scams and additional actions which might be required to safeguard People,” defined Rep. Raja Krishnamoorthi (D-IL), who signed the letters.
Krishnamoorthi, who chairs the committee on Financial and consumer Coverage, commented:
“As tales of skyrocketing prices and in a single day richness have attracted each expert and beginner buyers to cryptocurrencies, scammers have cashed in.”
The FTC stated in June that for the reason that starting of 2021, over 46,000 people have misplaced over $1 billion in crypto to scams. “That’s regarding one out of every 4 bucks misplaced, over the opposite fee methodology,” the regulator famous.
“The dearth of a government to flag suspicious transactions in a number of issues, the unchangingness of transactions, and due to this fact the restricted understanding a number of prospects and buyers have of the underlying expertise construct cryptocurrency a hottest dealing methodology for scammers,” Krishnamoorthi emphasised.
The chief added:
For these causes, I’m involved concerning the growth of fraud and consumer abuse coupled to cryptocurrencies.
“However federal legal guidelines, cryptocurrency exchanges ought to themselves act to safeguard prospects conducting transactions by means of their platforms. By implementing audit insurance policies, requiring secure disclosures, delisting, and adopting different security mechanisms, cryptocurrency exchanges can—and may—create safer environments for patrons,” the legislator elaborated.
The letters elevate the federal businesses and crypto exchanges to produce paperwork dated from January 2009 to this by Sept. 12.
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