In an effort to assist in reviewing the precautions that have been taken to safeguard investors, the chairman of a congressional subcommittee reached out to the CEO of Binance.US and requested that certain papers be produced.
A letter from the federal government was sent to Binance.US, where Brian Shroder serves as president and CEO. The letter requested immediate disclosure of official papers that demonstrate the exchange’s compliance with a variety of investor-centric safety standards. The request was submitted by Representative Raja Krishnamoorthi, who serves as the chairman of the House Subcommittee on Economic and Consumer Policy (which is part of the Committee on Oversight and Government Reform) in the United States House of Representatives.
In the letter that was delivered to Shroder, Krishnamoorthi highlighted the lack of cooperation by cryptocurrency exchanges in assisting the United States government reduce financial fraud and safeguard investors, noting as follows:
“The escalation of fraud and consumer exploitation worries me. As a worried cryptocurrency user, I am likewise troubled by cryptocurrency exchanges’ apparent inaction to safeguard their users’ transactions.”
Krishnamoorthi was worried about the increased risk for investors because to the “little or no screening” that occurs before tokens are listed on cryptocurrency exchanges. The committee has requested many papers from Binance.US, a wholly owned subsidiary of Binance, in an effort to further examine its concerns.
Binance.US has fewer than two weeks (Sept. 12) to deliver all papers sought dating back to the beginning of its activities.
In the letter, Krishnamoorthi restates his belief that crypto exchanges should take preventative actions to protect its users “by creating audit procedures, demanding specific disclosures, delisting, and adopting other safety mechanisms.”
Shroder has also been requested to provide the exchange’s anti-fraud and anti-scam technologies and methods.
The current crypto winter has resulted in “worse than anticipated” returns for 46% of adult crypto users in the United States, according to a recent poll.
In search of a “new approach to invest,” the clear majority of respondents gave cryptocurrency trading a try, perceiving it to be an “excellent way to earn money.”