SEC strengthens crypto security: 20 anti-fraud positions

The United States Securities and Exchange Commission(SEC) disclosed on Tuesday of its plans to introduce 20 additional positions within its enforcement division dedicated to reducing frauds in crypto trading markets. The unit will be named “Crypto Assets and Cyber Unit”, and comprise 50 personnel in total. 

SEC Crypto Assets and Cyber Unit

The unit will crack down on illicit crypto activities while addressing security issues. SEC Chair Gary Gensler made the following statement:

“By nearly doubling the size of this key unit, the SEC will be better equipped to police wrongdoing in the crypto markets while continuing to identify disclosure and controls issues with respect to cybersecurity.”

The renovated unit will prioritize the elimination of frauds using crypto offerings across multiple platforms and products, including cryptocurrency exchanges, digital asset staking, and lending, DeFi, NFTs, stablecoins, and more.   

Also Read: PayBitoPro Chief criticizes EU Laws Eliminating Privacy from Crypto

Prioritizing Investor Assets

According to the SEC, a significant portion of crypto trading occurs across offshore jurisdictions, where it is difficult to ensure adherence to industry-standard protocols. It is also true that crypto exchanges agave no centralized monitoring or regulatory systems in place.  

The SEC’s course of action follows Gensler’s previous statements acknowledging the agency’s plans to increase the protection offered to investors in crypto exchanges and other substitute trading platforms. 

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, states: 

“Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space. Meanwhile, cyber-related threats continue to pose existential risks to our financial markets and participants.”  

Also Read: US Secret Service Sets up Crypto Awareness Hub to Improve Public Perception

Wrapping Up

The SEC’s attempts at regulation across crypto trading markets will likely offer the much-needed framework for business enterprises. Thereafter, dealing in digital assets. Transparency and trust are essential for the sustainability of any trading market. Additionally, enforcement units provide further assurance for investors seeking to venture into digital assets.