A House committee has sent letters to 4 U.S. federal agencies and five cryptocurrency exchanges inquiring for information and facts about what they are performing to fight cryptocurrency fraud and cons.
Congress Concerns Regulators and Crypto Exchanges
The Home Committee on Oversight and Reform sent letters to four U.S. federal businesses and five crypto exchanges on Tuesday in an energy to crack down on crypto-relevant fraud and scams.
The 4 businesses are the Division of the Treasury, the Federal Trade Fee (FTC), the Commodity Futures Investing Commission (CFTC), and the Securities and Trade Commission (SEC). The five crypto trading platforms are Coinbase, FTX US, Binance US, Kraken, and Kucoin.
The letters ask for “information about the ways they are taking to beat cryptocurrency-associated fraud and frauds and extra steps that are needed to secure Us citizens,” stated Rep. Raja Krishnamoorthi (D-IL), who signed the letters.
Krishnamoorthi, who chairs the Subcommittee on Financial and Consumer Policy, commented:
As tales of skyrocketing price ranges and right away riches have attracted each skilled and novice traders to cryptocurrencies, scammers have cashed in.
The FTC claimed in June that since the get started of 2021, more than 46,000 persons have described getting rid of about $1 billion in crypto to scams. “That’s about one particular out of each and every four pounds documented shed, a lot more than any other payment technique,” the regulator noted.
“The deficiency of a central authority to flag suspicious transactions in lots of situations, the irreversibility of transactions, and the confined comprehending numerous people and traders have of the underlying technology make cryptocurrency a chosen transaction technique for scammers,” Krishnamoorthi emphasized.
The lawmaker added:
For all these reasons, I am involved about the growth of fraud and customer abuse linked to cryptocurrencies.
“Notwithstanding federal rules, cryptocurrency exchanges will have to themselves act to protect consumers conducting transactions through their platforms. By employing audit insurance policies, demanding particular disclosures, delisting, and adopting other safety mechanisms, cryptocurrency exchanges can—and should—create safer environments for shoppers,” the congressman in depth.
The letters inquire the federal businesses and crypto exchanges to deliver files dated from January 2009 to the existing by Sept. 12.
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Binance, Coinbase, Congress, crypto exchanges, Crypto Fraud, crypto fraud, cryptocurrency exchanges, cryptocurrency fraud, federal regulators, ftx, House committee, treasury division
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