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US Senator Advises Treasury Secretary to Act on Cryptocurrency Scams

US Senator Rick Scott penned a letter addressed to Janet Yellen, US Secretary of the Treasury expressing concerns about the rising number of fraudulent activities regarding cryptocurrencies.

He went on to explain that cryptocurrency values have plummeted drastically over the past weeks, all the while, reports of fraud and scams have increased in number. Senator Rick Scott quoted research by way of the FTC (Federal Trade Commission) that crypto-related scams have been drastically increased by 1000 percent during the past year and cost users upwards of 80 million USD, with the average consumer losing around 1900 USD in scams.

The senator, in his letter, questioned how the administration is aiming to shield consumers as well as legitimate investors from prevailing crypto scams and in what way the Treasury Department is going to recognize as well as prevent frauds in initial coin offerings (or ICO) and the purchasing and selling of digital currency on financial markets in the US.

He also raised queries about the administration’s plan to answer any legal uncertainties that may be resulting in a rough environment for the sale and advancement of cryptocurrency.

Yellen too has made known her concerns on several occasions over the exploitation of cryptocurrencies in illegal transactions. She stated earlier on that cryptocurrency was most commonly being used for illegal financing and pledged to work with other federal jurisdictions to devise effective regulatory foundations for cryptocurrencies.

Previously in February, the secretary of treasury deemed the exploitation of cryptocurrencies a growing issue and emphasized the significance of cryptocurrency regulation to guarantee that Bitcoin is not being used in illegitimate transactions. Yellen stated that the currently operating legal framework is not up to the mark in terms of regulating cryptocurrencies. In the meantime, the Biden governance is, according to reports, acting on increasing supervision on cryptocurrency.

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