The Securities and Exchange Commission (SEC) intends to increase the size of its bitcoin fraud team by 20 employees to combat bitcoin fraud. Fraud and hackers have reached a new level of sophistication. This reorganization of the United States Securities and Exchange Commission is quite beneficial.
Today we announced that we’re bolstering the unit responsible for protecting investors in crypto markets & from cyber-related threats. The newly renamed Crypto Assets & Cyber Unit in the Division of Enforcement will grow to 50 dedicated positions.
— U.S. Securities and Exchange Commission (@SECGov) May 3, 2022
Cryptocurrencies The Securities and Exchange Commission (SEC) has created 20 new positions to combat fraud
The Securities and Exchange Commission (SEC) has announced the addition of 20 new employees to its cryptocurrency market enforcement division. In an effort to decrease fraudulent activities, which are becoming more prevalent as a result of contemporary technology, this addition focuses on property rights infringement in coin offerings, lending, non-financial transactions, and finance. decentralized. This entity will be called Crypto Assets and Cyber Security. At the moment it has 50 employees.
What is the goal of the unit? In 2017, the Securities and Exchange Commission (SEC) announced more than 80 lawsuits related to fraudulent offers. However, considering current technological advances, more threats are expected in the future. However, disclosure limits and security requirements will be covered by this division.
It is important to remember that the Securities and Exchange Commission (SEC) oversees the sale and trading of securities. This is done to ensure the complete honesty of the client and to prevent any fraudulent activity. As a result of its success, the Securities and Exchange Commission (SEC) intends to expand its divisions to ensure its long-term stability.
Why is it necessary to strengthen the security of cryptocurrencies?
As previously announced, the increase in employees will go to crypto-asset offerings, gambling, trading, and lending products, as well as other related activities. Stablecoins, non-fungible tokens, and DeFi are examples of what fall into this category. But why is it necessary to act more quickly in these areas? The Securities Market Commission explains it.
From time to time, operations take place in offshore countries, creating a regulatory gray area. This method allows many fraudsters to bypass financial gatekeepers such as banks and stock exchanges. This only serves to increase the level of cybercrime activities. The mission of the Securities Market Commission is to protect both investors and bitcoin trading platforms.
Conclusion
The SEC’s decision to increase the number of law enforcement officers by 20 is excellent. Investor safety is crucial at this time, given the proliferation of fraud and cyber threats. The size of this division can be reduced to 50 employees, which would solve various difficulties. It is necessary to determine how beneficial it is in the long term.
