According to the report, a chairperson under the U.S House Panel on Government Reform and Oversight recently wrote to the Binance.US’s CEO. In the letter, the congressman requested that the exchange founder release all its customers regarding clients’ safety for review.
Congressman Request For Binance.US Customers Safety Protocol
Recently, the CEO of Binance.US, Brian Shroder, received an official letter from a congressman, Raja Krishnamoorthi. The letter officially requested the CEO to disclose all the files the exchange used to protect customers ‘ interests and funds urgently.
According to reports, Congressman Raja stated that he requested Binance.US customers’ safety protocols because of the prevalent fraudulent activities rampaging the crypto sector. He noted that crypto exchanges are doing nothing to help the US regulators mitigate the financial crimes rampaging the country.
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He continued that many crypto exchanges lack good safety protocols to protect users from financial abuse and theft. He also stated that the vetting process that exchanges use to examine tokens before listing them did nothing to stop fraudsters from exploiting investors.
He stated that these and more concerns urged him to dig deeper into Binance’s branch in the US. The Congressman added that once he gains access to the exchange’s consumer security protocol, he and his team would thoroughly review and amend it to improve customers’ security.
Binance.US Has Two Weeks To Submit The Documents
According to the letter, the congressman requested all the safety protocol documents since the American Binance branch started operation. Furthermore, Raja gave the exchange till September 12, meaning the exchange has to submit the documents within two weeks.
Representing the United States Congress, Raja stated that crypto exchanges ought to employ every safety measure necessary to keep investors safe. His site examples include implementing audit protocol, delisting harmful tokens, transparent operations, and other security strategies.
Additionally, the letter also summoned the exchange’s CEO to some specific questions. One of the questions requested him to state the exchange’s measures in countering thefts, risks, and scams.
Meanwhile, a recent research report showed that about 46% of investors in the United States lost their funds in the prevalent bearish crypto market. Many respondents revealed that they ventured into the crypto industry as they sought a new way to invest their funds. They thought cryptocurrency was a good way to make money; however, having lost funds, they think otherwise now.