The U.S. Federal Trade Commission (FTC) has announced that it has set up an internal Blockchain Working Group.
Recently, the FTC announced a lawsuit against four individuals alleging that they were involved in promoting fraudulent cryptocurrency schemes. Neil Chilson, Acting Chief Technologist, FTC, said that this lawsuit is just one such example.
“I expect that fraudsters will repurpose old schemes to capitalize on the current glamour and mystery of cryptocurrency. The FTC staff will diligently apply its expertise to identify such schemes,” he said.
In the wake of cryptocurrency and blockchain developments, Chilson believes that the working group is an important step to ensure the FTC can continue its missions to protect consumers and promote competition.
“The working group has at least three goals. First, build on FTC staff expertise in cryptocurrency and blockchain technology through resource sharing and by hosting outside experts. Second, facilitate internal communication and external coordination on enforcement actions and other related projects. And third, serve as an internal forum for brainstorming potential impacts on the FTC’s dual missions and how to address those impacts,” Chilson said.
It was in June 2015 that the FTC brought its first cryptocurrency-related case against a smartphone app developer who lured consumers into downloading its rewards app, which loaded the consumers’ mobile phones with malicious software to mine virtual currencies. Last year, the FTC held a public forum on blockchain technology as part of its ongoing work to protect consumers taking advantage of new and emerging financial technology.
