Consumer Complaints Against Digital Currencies Increase Amidst Phenomenal Price Increases

Amidst the rising market capitalization for cryptocurrencies, the variety of complaints in opposition to digital foreign money firms filed with the US Shopper Monetary Safety Bureau (CFPB) has elevated by almost 6,000% based on report by LendEDU.

Primarily based on CFPB knowledge, there have been 277 complaints tagged “digital foreign money” since January. In all of 2016, there have been solely seven. A further 288 complaints have been filed in opposition to Coinbase in 2017. Nonetheless, this represents only a fraction of the 145,948 whole complaints lodged with the CFPB in 2017.

The complaints filed by shoppers don’t essentially imply that the events in query are partaking in any wrongdoing. Nonetheless, regulators and researchers are utilizing the database of the CFPB to establish potential felony actions.

CFPB warning on digital currencies

In the meantime, the CFPB has issued a warning to shoppers on the potential points with cryptocurrencies. Among the many potential points cited are the digital currencies’ risky trade charges and the specter of hacking and scams. The company additionally claimed that firms concerned in digital foreign money buying and selling could not present help or refunds for misplaced or stolen funds to the shoppers.

Opinion on the potential causes behind the rise in complaints

Bitcoin tax regulation and anti-money laundering (AML) compliance specialist Tyson Cross has provided his opinion concerning the rise in cryptocurrency complaints. He thinks the rise in complaints is as a result of stricter verification processes which have been applied by exchanges.

“As an entire, the business is rising and extra shoppers are creating accounts. At Coinbase, the userbase is rising very quickly. Nonetheless, because the business has grown so to have the restrictions positioned on firms like Coinbase by regulators. Regulators have compelled exchanges, like Coinbase, to position tight restrictions and limits on customers as a result of anti-money laundering issues. Coinbase, and different exchanges, now require an in-depth verification course of to withdrawal cash.”