In a matter of 12 months, the cryptocurrency industry has grown from around 34 million active users to more than 110 million active users. This goes to show at which scale the cryptocurrency industry has grown and how much it is set to grow in the coming months/years.
The industry has been gaining tremendous success and adoption, making it one of the most attractive platforms for the public. Unfortunately, the platform has also become a playground for scammers and impersonators.
In the last 6 months, the scam rate in the cryptocurrency industry has also increased and more cases are emerging on a daily basis. Therefore, the regulatory authorities from around the world have become extremely active and vigilant around the cryptocurrency industry.
With time, the fraudsters have even become smart and sophisticated in coming up with different and innovative ideas to scam people. In the cryptocurrency industry, the most common causes are related to fraudsters pretending to be cryptocurrency brokers.
These impersonators even go to great lengths of even developing and launching cryptocurrency exchanges. However, only bad intentions and motives are behind the foundation of such cryptocurrency exchanges.
The fake brokers use these cryptocurrency exchanges to lure innocent people, make false promises, and deprive them of their hard-earned money and life savings.
In the light of the above events, Gary Gensler, the chief at the US SEC has made a statement about cryptocurrency scams. According to Gensler, the cases related to cryptocurrencies are constantly increasing and they need to do something about it at the earliest.
Gensler added that this is the most critical and perfect time for the federal financial regulators to start looking into such cases. They need to bring these cases to the front and start investigating them in order to get to the bottom of the scams.
The fraudsters have been on the loose for a really long time and it is time to bring them to justice. The highest priority here is the people and their families who get affected by such fraudsters. They continue coming up with different ways to lure innocent people and steal their money.
Gensler added that the regulatory authorities need to exert more effort in introducing policies and regulations that are focused on protecting consumers against such scams.
A new security infrastructure needs to be introduced in order to fight off crimes in fields such as fintech, cyber, and cryptocurrencies.
He added that the regulators need to invest more resources in monitoring cryptocurrency projects and operations. This would ensure that no fake cryptocurrency exchange or broker would be able to misuse the industry again.
In the end, Gensler demanded that the regulators must implement these regulations aggressively so no one can try and avoid them.