As per recent reports, the US Federal Trade Commission (FTC) will be organizing a free workshop named “Decrypting Cryptocurrency Scams” this summer. The commission informed the media by releasing a press release on April 30.
The workshop will aim to provide adequate knowledge to participants about the risks involved in the crypto sphere.
The event will be hosting law enforcers, consumer groups and the private sector to explore the tricks used by criminals to take advantage of public interest in digital currencies.
The press release further states that with the emerging popularity of digital currencies the amount of scams has also increased. The regulatory authority informed a rise in “deceptive investment and business opportunities, bait-and-switch schemes, and deceptively marketed mining machines.”
The free June 25 workshop will be conducted at DePaul University in Chicago, and people will also be able to watch the event through a webcast. The press release stated that this event comes under FTC’s current plan to protect consumers who use new financial technologies.
Earlier in March, the FTC came up with a Blockchain Working Group that aims to target fraud that occurs in the crypto space and in the blockchain.
Neil Chilson, FTC Acting Chief Technologist, said, “FTC staff expertise in cryptocurrency and blockchain technology through resource sharing and by hosting outside experts,” assistance in “internal communication and external coordination on enforcement actions.”
Chilson added, “We believe this working group is an important step to ensure the FTC can continue its missions to protect consumers and promote competition in light of cryptocurrency and blockchain developments. I expect that fraudsters will repurpose old schemes to capitalize on the current glamour and mystery of cryptocurrency.”
In the same month, the US Securities and Exchange Commission launched a probe on digital currencies to produce more results from its inquiry on Initial Coin Offerings ICOs and its place under securities regulations.
House Financial Services Committee, Brad Sherman (D-CA), compared IPO and ICO’s in a debate with SEC over a balanced approach towards ICOs. He said, “It takes money out of the real economy, it takes people willing to invest and risk, and says ‘don’t use that ability to risk, don’t use those animal spirits to help create a job for a person who needs one, let alone build a factory for thousands, sit there and trades back and forth in the ICO.’
He stood against a positive outlook towards ICOs as he said, “When you strike a balance between those who are trying to create a new currency to facilitate drugs, tax evasion, to deprive the Fed of its ability to market our securities and return 100 bln dollars or so to the US Treasury, all the balances are for total investor protection, which could be achieved by totally banning.”
It should be noted that the US and the whole world is suffering from numerous crypto frauds due to the lack of information investors possess. Cybercriminals have duped innocent investors’ trough luring ICO sales without having any authentic identity. FTC’s initiative can help people in avoiding unfortunate situations prevalent in the crypto space.