Congress Questions Coinbase, FTX, Binance, Kraken in Crypto Fraud Crackdown – Regulation Bitcoin News

A House committee sent five letters asking U.S. government agencies to provide information on how they combat crypto fraud.

Congress questions regulators and crypto exchanges

In an attempt to combat crypto-related fraud and other scams, the House Committee on Oversight and Reform wrote Tuesday to five U.S. crypto exchanges and four federal agencies.

These four agencies include the Department of the Treasury (FTC), the Federal Trade Commission, the Commodity Futures Trading Commission and the Securities and Exchange Commission. Five crypto trading platforms include Coinbase, FTX US and Binance US. Kraken and Kucoin are also available.

The letters request “information about the steps they are taking to combat cryptocurrency-related fraud and scams and additional actions that are needed to protect Americans,” explained Rep. Raja Krishnamoorthi (D-IL), who signed the letters.

Krishnamoorthi is the Chair of the Subcommittee on Economic and Consumer Policy.

Scammers are making a lot of money claiming that cryptocurrencies will bring you skyrocketing profits and instant riches.

In June, the FTC reported that more than 46,000 individuals had lost over $1 million in cryptocurrency to scams since 2021. “That’s about one out of every four dollars reported lost, more than any other payment method,” the regulator noted.

“The lack of a central authority to flag suspicious transactions in many situations, the irreversibility of transactions, and the limited understanding many consumers and investors have of the underlying technology make cryptocurrency a preferred transaction method for scammers,” Krishnamoorthi emphasized.

He added:

All of these factors are why I worry about the rise in fraud and abuse associated with cryptocurrencies.

“Notwithstanding federal regulations, cryptocurrency exchanges must themselves act to protect consumers conducting transactions through their platforms. By implementing audit policies, requiring certain disclosures, delisting, and adopting other safety mechanisms, cryptocurrency exchanges can—and should—create safer environments for consumers,” the congressman detailed.

These letters request federal agencies and crypto-exchanges to send documents from Jan 2009 through Sept. 12th.

Do you have any thoughts about Congress asking federal agencies and cryptocurrency exchanges questions about how they deal with crypto fraud? Please comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.