- Cryptocurrency values drop while incidence of fraud and scams have increased by 1000%
- Senator also warns of security implications
- Treasury Secretary Janet Yellen working with federal regulators to put into place a regulatory framework
The cryptocurrency is one of the most unregulated industries and highly decentralized. However this is used as lacunae by scamsters. Scams have increased by 1000% in the past one year and investors have lost money to a tune of $80 million. This has prompted U.S. Senator Rick Scott to urge Treasury Secretary Janet Yellen to take action on cryptocurrency scams. Scott added that there is an abnormal increase in criminal activities surrounding cryptocurrency which has increased in popularity in the last few years.
Falling Cryptocurrency values and rising scams
Senator Rick Scott in a letter to Treasury Secretary expressed dismay at the unregulated nature of cryptocurrency trade and the rising scams which are affecting poor investors in a big way. Scott added that the values of cryptocurrency have tanked in the last few days which incidence of scams and frauds have steadily increased. The criminal activities related to cryptocurrency have increased and demanded urgent action. He also asked about the measures taken by the Treasury Department to preempt fraud and Scams in initial coin offerings and the trading of cryptocurrency on U.S. financial markets..
Cryptocurrency trade and its Security implications
He also questioned if the turbulent environment for the development and sale of cryptocurrency was another ploy and what steps the Congress must take to address this. Senator Scott security implications due to interference by not so friendly nations like China or Russia. He also asked if there were tools available to guide naïve investors and innovators.
Federal regulators to put into place a regulatory framework to oversee cryptocurrency trade
Treasury Secretary Janet Yellen has also warned about the use of cryptocurrencies in illicit transactions. Yellen had said that cryptocurrency is being used to finance illegal activities and promised to work with federal regulators to construct an effective regulatory framework for cryptocurrencies.
U.S. Treasury Secretary Janet Yellen has accepted that the US does not have a worthwhile mechanism to regulate cryptocurrency trade. Issues like money laundering and illicit financing cannot be tackled and investigated under the present rules and laws. Therefore there is an urgent need to have such a regulatory framework in place.
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