Government to look closer at crypto related fraud

11 Jul, 2018
by David Borman
Government to look closer at crypto related fraud

Today it was announced that by executive order, the Trump administration will be creating a task force to more closely monitor "digital currency fraud." This task force seeks to bring the Securities and Exchange Comission (SEC), Department of Justice (DoJ) and the Commodity Futures Trading Comission (CFTC) together in order to coordinate and investigate claims of fraud and scams involving cryptocurrency.

With the rise of the crypto community, there has also been a rise in scams related to it. Due to the general complexity of most blockchain projects as well as good old human greed, everything from crude phishing scams to entire projects being fraudulent have plagued many would-be investors and curious tech adopters. Already many warnings have come out of the major regulatory bodies on the risks involved with crypto. The hope is that this new task force will focus and refine these efforts to make the process of bringing criminals to justice more efficient.

Critics often worry over any governmental oversight into cryptocurrency, the fear being that poorly educated regulators will make rash decisions about "magic internet money." The fact that mainstream media so often links cryptocurrency with black market drug and weapons trade doesn't exactly help. Still, this in fact may be a good thing for the crypto world, as it will make it easier for the regulators to communicate, share information, and generally make sure they are cracking down on real criminals.

Whether this will lead to a government push back on crypto, or give the whole ecosystem some much needed credibility, remains to be seen. In the coming months we will watch history unfold as the US government starts taking crypto related fraud seriously for the first time.

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