The US Securities and Exchange Commission (SEC) is creating a new unit to monitor cryptocurrency markets and expanding staff to combat digital fraud.
In a statement, the regulator said the Commission will create a new unit to monitor cryptocurrency markets and will hire at least 50 staff to combat digital fraud.
The new unit will focus on preventing fraud using crypto asset offers, crypto asset exchanges, lending products
“By nearly doubling the size of this key unit, the SEC will be better equipped to monitor offences in the cryptocurrency markets, while continuing to identify disclosures and monitor cybersecurity issues,” SEC Chairman Gary Gensler said.
He said the new unit will pay particular attention to cryptocurrency trading platforms, as most of them are based in offshore jurisdictions and operate in a regulatory grey area, without centralised oversight from banks and exchanges.
In April, Gensler said the agency was weighing how it could extend investor protection to users of exchanges and alternative trading platforms.