Binance US asked to unveil official documents on investor-based safety protocols | The Financial Express

Binance US asked to unveil official documents on investor-based safety protocols

According to Cointelegraph, through a letter to Shroder, Congressman Raja Krishnamoorthi from the subcommittee on Economic and Consumer Policy emphasised cryptocurrency exchanges’ lack of participation in assisting the US governmentcurb financial frauds and defend investors

Binance US asked to unveil official documents on investor-based safety protocols
As per a recent survey, it’s revealed that 46% of adult cryptocurrency users in the United States saw loss in investments during the ongoing cryptocurrency winter

Brain Shroder, president and CEO, Binance US, has received a federal letter to ensure the urgent disclosure of official documents with the aim to prove the exchange’s adherence to various investor-oriented safety protocols. The request has come from a subcommittee chairman under the United States House Committee on Oversight and Government Reform, as reported by Cointelegraph.

According to Cointelegraph, through a letter to Shroder, Congressman Raja Krishnamoorthi from the subcommittee on Economic and Consumer Policy emphasised cryptocurrency exchanges’ lack of participation in assisting the US governmentcurb financial frauds and defend investors. “I am concerned by the growth of fraud and consumer abuse. I am also concerned by the lack of action by cryptocurrency exchanges to protect consumers conducting transactions through their platforms,” Krishnamoorthi said.

On the basis of information by Cointelegraph, Krishnamoorthi expressed skepticism in the vetting process behind listing tokens on cryptocurrency exchanges. Binance US, being a subsidiary of the cryptocurrency exchange Binance, was approached by the subcommittee for producing various documents to help review the aforementioned concerns. It will be required of Binance US to produce all necessary documents since it started operations and has been given a time period of less than two weeks to show the same. 

Moreover, Cointelegraph noted that Krishnamoorthi spoke on behalf of the US Congress, stating that cryptocurrency exchanges must take up measures to ensure investors’ safety through implementation of audit policies, requirement of certain disclosures, delistment, and adoption of other safety mechanisms. In addition to documents, it has been asked of Shroder to answer questions with regard to the disclosure of tools and mechanisms implemented by the exchange to diminish risks, frauds and scams. As per a recent survey, it’s revealed that 46% of adult cryptocurrency users in the United States saw loss in investments during the ongoing cryptocurrency winter. 

(With insights from Cointelegraph)

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