US Congressman Says: Coinbase, Binance, Kraken and Other Crypto Companies Should Explain How They Fight Fraud
A US congressman from Illinois is asking prominent federal agencies and cryptocurrency exchange platforms for information on how they fight digital asset fraud.
In a new press release, Representative Raja Krishnamoorthi requested information from Coinbase, Kraken, Binance, FTX, and KuCoin on what they are doing to protect American investors from crypto scams.
Krishnamoorthi also sent letters to the US Department of Treasury, the US Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CTFC) and the Federal Trade Commission (FTC). request the same information. The congressman said that he was worried about the lack of central authority, irreversible transactions, and the public's limited understanding of crypto fraud.
“As stories of skyrocketing prices and overnight wealth attracted both professional and amateur investors to cryptocurrencies, the scammers made money.
The lack of a central authority to flag suspicious transactions in many situations, irreversible transactions, and the limited understanding of many consumers and investors about the underlying technology makes Cryptocurrencies become the preferred method of transaction for scammers.
For all of these reasons, I am concerned about the rise of fraud and consumer abuse related to cryptocurrency.”
Krishnamoorthi said the information he requested will help Congress stay informed when creating legislative solutions for the digital asset market. According to the press release, the cryptocurrency market has vulnerabilities that the government has yet to patch.
“Consumers are often unaware of the patchwork of resources available to inform their crypto investment decisions, and insurers are reluctant to offer insurance coverage.” for individual consumers due to the lack of regulation of digital assets.
Despite these vulnerabilities, the federal government has been slow to curb cryptocurrency scams and scams, and current federal regulations do not comprehensively or explicitly cover clear digital assets under all circumstances. "
Aug 31, 2022