A Home committee has despatched letters to 4 U.S. federal companies and 5 cryptocurrency exchanges asking for details about 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 companies and 5 crypto exchanges on Tuesday in an effort to crack down on crypto-related fraud and scams.
The 4 companies are the Division of the Treasury, the Federal Commerce Fee (FTC), the Commodity Futures Buying and selling Fee (CFTC), and the Securities and Change Fee (SEC). The 5 crypto buying and selling platforms are Coinbase, FTX US, Binance US, Kraken, and Kucoin.
The letters request “details about the steps they’re taking to fight cryptocurrency-related fraud and scams and extra actions which can be wanted to guard People,” defined Rep. Raja Krishnamoorthi (D-IL), who signed the letters.
Krishnamoorthi, who chairs the Subcommittee on Financial and Client Coverage, commented:
As tales of skyrocketing costs and in a single day riches have attracted each skilled and newbie buyers to cryptocurrencies, scammers have cashed in.
The FTC mentioned in June that for the reason that begin of 2021, greater than 46,000 individuals have reported dropping over $1 billion in crypto to scams. “That’s about one out of each 4 {dollars} reported misplaced, greater than another cost technique,” the regulator famous.
“The dearth of a government to flag suspicious transactions in lots of conditions, the irreversibility of transactions, and the restricted understanding many shoppers and buyers have of the underlying expertise make cryptocurrency a most popular transaction technique for scammers,” Krishnamoorthi emphasised.
The lawmaker added:
For all these causes, I’m involved in regards to the progress of fraud and shopper abuse linked to cryptocurrencies.
“However federal laws, cryptocurrency exchanges should themselves act to guard shoppers conducting transactions via their platforms. By implementing audit insurance policies, requiring sure disclosures, delisting, and adopting different security mechanisms, cryptocurrency exchanges can—and will—create safer environments for shoppers,” the congressman detailed.
The letters ask the federal companies and crypto exchanges to supply paperwork dated from January 2009 to the current by Sept. 12.
What do you consider Congress questioning federal companies and crypto exchanges about their measures in opposition to cryptocurrency fraud and scams? Tell us within the feedback part under.
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