The US Congressman Asks Crypto Exchanges How They Deal With Fraud
Whether we like it or not, we have to admit that the crypto industry is getting some bad rep and it is often deserved. Representative Raja Krishnamoorthi from Illinois recently sent letters to Coinbase, Kraken, FTX, KuCoin, and Binance asking how these organizations protect US citizens from fraudsters and bad actors.
The question of regulation is one that both crypto enthusiasts and skeptics discuss with passion. We do need regulations to ensure wide adoption in the nearest future. However, regulations often come with restraints that can significantly reduce the attractiveness of crypto assets in the eyes of people who believe in total decentralization and the necessity to avoid governmental control
We do not like the idea of being overseen by authorities, but the question asked by Mr. Krishnamoorthi is valid and deserves answers. Crypto exchanges must disclose more information about projects that they allow to be publicly traded. The congressman also sent the same letter to various federal agencies like the Treasury Department, SEC, CTFC, and FTC.
Three things worry this particular politician and many people who want or already invest in crypto:
The lack of any oversight aside from what exchanges do internally.
The irreversibility of all transactions due to the nature of the public ledger.
The lack of education among many investors who do not know much about the technology.
The latter issue seems to be the biggest one. While the whole crypto community repeats the mantra “do your own research” with religious zeal, the vast majority of people who buy tokens usually do not know much about the projects they are investing in. These projects may fall due to external factors, fraudulent actions of founders, or any other set of problems that will be detrimental to their very existence.
We hope that the congressman will receive satisfactory answers to their questions. At the same time, we urge everyone once again to learn more about tokens that you are planning to buy. Remember that there is risk in every investment and you must make informed decisions to avoid any problems in the future!
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