US Congress To Review Binance Consumer Safety Documents

Twitter icon  •  Published il y a 1 an  •  Nikolas Sargeant

A Congressman contracted the CEO of Binance US to review all Binance US files related to consumer safety

A Congressman contracted the CEO of Binance US to review all Binance US files related to consumer safety. The Subcommittee chairman that made contact has asked the crypto firm to produce various documents to review the measures taken to protect investors. 

What Has Been Said?

Brian Shroder, the president and CEO of Binance US, received a federal request for urgent disclosure of official documentation that supports the idea that Binance adheres to various investor-centric safety protocols. The letter of request was sent by a Subcommittee chairman under the United States House Committee on Oversight and Government Reform. 

In the letter to Shroder, which has been made public, Congressman Raja Krishnamoorthi from the Subcommittee on Economic and Consumer Policy aimed to bring to light the lack of participation from crypto exchanges in helping the US government protect investors and help to govern fraud. 

Congressman Krishnamoorthi stated: “I am concerned by the rapid growth of fraud and consumer abuse. I am also concerned by cryptocurrency exchanges' apparent lack of action to protect consumers conducting transactions through their platforms.”

There are doubts among regulators about the vetting process required for projects to list coins on crypto exchanges. Governing the vetting process will help to protect investors from cowboy blockchain projects and scams. 

What Was Requested?

Binance US will have to produce all documents since it began operating before the 12th of September, 2022, giving the firm just two weeks to get things together. Acting on behalf of US Congress, Krishnamoorthi reiterated the responsibility crypto exchanges have to protect the public and ensure safety protocols are enforced, stating: “By implementing audit policies, requiring certain disclosures, delisting, and adopting other safety mechanisms.”

Shroder was also asked to answer specific questions disclosing the tools and mechanisms implemented by the exchange to reduce the risk of falling victim to fraud and scams. Given the year crypto has had, it’s no surprise there is public pressure on the US government to ensure things like the LunaTerra scandal don’t happen again.

Many crypto investors enter the market hoping it is a straightforward way to make money, although 2022 hasn’t been the year to validate this theory. 

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.