More Consumer Complaints About Crypto, Industry Slump

CFPB has received more and more complaints about crypto that have raised the concerns of more scrutiny implementation in this industry.

According to The Consumer Financial Protection Bureau (CFPB), consumer complaints in the last two years have increased, not only relevant to the crypto-exchange platforms but also the traditional monetary systems like JPMorgan Chase & Co. and Wells Fargo & Co.

The CFPB will put in plenty of effort to protect customers from “unfair, deceptive, or abusive practices” in the cryptocurrency industry. The organization has received 2,734 complaints against digital-asset-centric companies from the disclosed data from Jan 2020 to Aug 2022.

A large portion of these complaints is about fraud or scams (28%), and withdrawal inaccessibility (20%), focusing on many crypto-native companies such as Binance.US, Coinbase Global Inc., Gemini Trust Co., and Black Inc. In the exported data, there are also traditional institutions like JP Morgan, Wells Fargo, and PNC Bank NA.

Until now, the crypto industry has received fewer regulations compared with other financial aspects. That means, the general upward trend will be the reason for more regulatory attention from Government and regulators.

These complaints are vital databases to set up the rule-making process and other actions from other law-enforcement agencies like the Federal Bureau of Investigation. The Consumer Financial Protection Bureau also shared the complaints report for the Federal Trade Commission (FTC) to add to Consumer Sentinel Network.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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