Congress Questions Coinbase, FTX, Binance, Kraken in Crypto Fraud Crackdown

A House committee has sent letters to four U.S. federal agencies and 5 cryptocurrency exchanges requesting data concerning what they’re doing to combat cryptocurrency fraud and scams.

Congress Questions Regulators and Crypto Exchanges

The House Committee on Oversight and Reform sent letters to four U.S. federal agencies and 5 crypto exchanges on Tuesday in a trial to restrict crypto-related fraud and scams.

The four agencies square measure the Department of the Treasury, the Federal Trade Commission (FTC), the Commodity Futures commercialism Commission (CFTC), and therefore the Securities and Exchange Commission (SEC). The 5 crypto commercialism platforms square measure Coinbase, FTX US, Binance US, Kraken, and Kucoin.

The letters request “information concerning the steps {they square measure|they’re} taking to combat cryptocurrency-related fraud and scams and extra actions that are required to safeguard Americans,” explained Rep. Raja Krishnamoorthi (D-IL), who signed the letters.

Krishnamoorthi, who chairs the committee on Economic and client Policy, commented:

“As stories of skyrocketing costs and overnight richness have attracted both skilled and amateur investors to cryptocurrencies, scammers have cashed in.”

The FTC said in June that since the beginning of 2021, over 46,000 folks have lost over $1 billion in crypto to scams. “That’s concerning one out of each four bucks lost, over the other payment methodology,” the regulator noted.

“The lack of a central authority to flag suspicious transactions in several things, the unchangingness of transactions, and therefore the restricted understanding several customers and investors have of the underlying technology build cryptocurrency a most popular dealing methodology for scammers,” Krishnamoorthi emphasized.

The leader added:

For these reasons, I’m concerned about the expansion of fraud and client abuse coupled to cryptocurrencies.

“Notwithstanding federal laws, cryptocurrency exchanges should themselves act to safeguard customers conducting transactions through their platforms. By implementing audit policies, requiring safe disclosures, delisting, and adopting alternative safety mechanisms, cryptocurrency exchanges can—and should—create safer environments for customers,” the legislator elaborated.

The letters raise the federal agencies and crypto exchanges to supply documents dated from January 2009 to this by Sept. 12.

The post Congress Questions Coinbase, FTX, Binance, Kraken in Crypto Fraud Crackdown first appeared on BTC Wires.

Credit: Source link