A Home committee has despatched letters to 4 U.S. federal companies and 5 cryptocurrency exchanges requesting information 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 companies and 5 crypto exchanges on Tuesday in a trial to limit crypto-related fraud and scams.
The 4 companies 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 Trade Fee (SEC). The 5 crypto commercialism platforms sq. measure Coinbase, FTX US, Binance US, Kraken, and Kucoin.
The letters request “info regarding the steps they’re taking to fight cryptocurrency-related fraud and scams and additional actions which are required to safeguard Individuals,” defined Rep. Raja Krishnamoorthi (D-IL), who signed the letters.
Krishnamoorthi, who chairs the committee on Financial and shopper Coverage, commented:
“As tales of skyrocketing prices and in a single day richness have attracted each expert and novice traders 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 clients and traders have of the underlying know-how construct cryptocurrency a hottest dealing methodology for scammers,” Krishnamoorthi emphasised.
The chief added:
For these causes, I’m involved concerning the enlargement of fraud and shopper abuse coupled to cryptocurrencies.
“However federal legal guidelines, cryptocurrency exchanges ought to themselves act to safeguard clients conducting transactions by means of their platforms. By implementing audit insurance policies, requiring protected disclosures, delisting, and adopting different security mechanisms, cryptocurrency exchanges can—and will—create safer environments for purchasers,” the legislator elaborated.
The letters increase the federal companies and crypto exchanges to provide paperwork dated from January 2009 to this by Sept. 12.
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