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 Alternate 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 might be wanted to guard People,” defined Rep. Raja Krishnamoorthi (D-IL), who signed the letters.
Krishnamoorthi, who chairs the Subcommittee on Financial and Shopper 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 because the begin of 2021, greater than 46,000 individuals have reported shedding over $1 billion in crypto to scams. “That’s about one out of each 4 {dollars} reported misplaced, greater than another fee methodology,” the regulator famous.
“The dearth of a government to flag suspicious transactions in many conditions, the irreversibility of transactions, and the restricted understanding many customers and buyers have of the underlying expertise make cryptocurrency a most popular transaction methodology for scammers,” Krishnamoorthi emphasised.
The lawmaker added:
For all these causes, I’m involved concerning the development of fraud and client abuse linked to cryptocurrencies.
“However federal rules, cryptocurrency exchanges should themselves act to guard customers conducting transactions by means of their platforms. By implementing audit insurance policies, requiring sure disclosures, delisting, and adopting different security mechanisms, cryptocurrency exchanges can—and may—create safer environments for customers,” 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 in the feedback part beneath.
Earlier article
DC Legal professional Basic Sues Billionaire Michael Saylor and Microstrategy Over Alleged Tax Fraud — Seeks $100 Million
Extra Common Information
In Case You Missed It
Draft Legislation Regulating Facets of Crypto Taxation Submitted to Russian Parliament
A invoice updating Russia’s tax regulation to include provisions pertaining to cryptocurrencies has been filed with the State Duma, the decrease home of parliament. The laws is tailor-made to manage the taxation of gross sales and income in the nation’s market … learn extra.
Constancy Investments Launches Crypto, Metaverse ETFs — Says ‘We Proceed to See Demand’
Bitcoin ATM Operator Indicted in New York Allegedly Operating Unlawful Enterprise Attracting Criminals
Curiosity in Actual Property Investments in Spain Grew 400%, With Some Utilizing Crypto and Shares as Cost Technique
Ethereum Basis’s Monetary Report Discloses It Holds $1.6 Billion in Belongings, 80.5% Held in Ether
