Trump's New Fraud Task Force Will Monitor Cryptocurrency

US President Donald Trump has signed an executive order creating a new task force to tackle financial fraud. The task force differs from its predecessor in its emphasis on digital asset fraud and cyber-crime.

The group is called 'the Task Force on Market Integrity and Consumer Fraud', according to the official document. It will be chaired by Deputy Attorney General Rod J. Rosenstein and will include Christopher A. Wray, the Director of the FBI.

The purpose of the group is to provide recommendations to Attorney General Jeff Sessions on the subject of financial fraud in all its guises. Notably, digital currency is included in the order.

The recommendations are to relate to the investigation and prosecution of specific cases and enforcement initiatives in general.

The task force will have the power to call officials of any other government agency to meetings, and through Sessions will be able to make suggestions to Trump regarding action to enhance cooperation between agencies and changes to legislation.

The new group will replace the Financial Fraud Enforcement Task Force that was set up in November 2009 by Barack Obama in the wake of the financial crisis. According to Bloomberg, the creation of a new group will help the current administration direct its focus; Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term were not included in the previous task force's remit.

Introducing the executive order, Rosenstein said at a press briefing: “Fraud committed by companies and their employees has a devastating impact on American citizens in the financial markets, the health care sector, and elsewhere.”

Rosenstein said at a bank meeting in February that the Justice Department was working on a comprehensive cryptocurrency strategy, calling banks "the first line of defense".

Cryptocurrency Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term in the US

Robert Cohen, Head of the Securities and Exchange Commission’s Enforcement Division Cyber Unit, made positive comments about cryptocurrency at an event in May of this year, saying: "The SEC has been open about meeting with people from the industry, to come in and meet with the staff, to talk about the ideas you have, the new developments, and have a dialogue about the new technology."

The SEC is one of the country's main financial regulators. Its recent actions in connection with cryptocurrency include setting up its own fake-ICO website to help the public spot fraud, ruling that Ethereum is not a security which caused the price of that cryptocurrency to jump considerably, and leading the arrests of three individuals that perpetrated a $32 million ICO scam.

On Wednesday, one of the US' self-regulatory organisations published a notice urging its member companies to inform it of any cryptocurrency business that they have or plan to have.