FTC responsible for creating Blockchain Working group
Neil Chilson, chief technologist of the agency, in a blog post on Friday mentioned:
“We believe this working group is an important step to ensure the FTC can continue its missions to protect consumers and promote competition in light of cryptocurrency and blockchain developments.”
The motive of the group is to “build on FTC staff expertise in cryptocurrency and blockchain technology through resource sharing and by hosting outside experts.” the motive of the group is to improve communication and coordination by enforcement actions both externally and within the agency.
The FTC announcement and creation of the group coincided with each other about pursuing a lawsuit against four individuals collaborating with Bitcoin Funding Team and associated operations My7Network and Jetcoin, who are suspected to have used bitcoin in fraudulent ” chain referral schemes” – the first of its kind for the agency.
Chilson also mentioned:
“As the primary federal general consumer protection agency, the FTC has seen this pattern before. Fraudsters often venture to capitalize on the excitement and confusion around hot new technologies, and they are quick to dress up old schemes in the clothes of the latest and greatest innovations.”
FTC which came into the crypto industry since 2015, filed its first cryptocurrency-related case regarding an app containing mining malware. Since then it has at least prosecuted one crypto-related lawsuit and also held a public discussion on blockchain technology in 2017.
The commission published a blog post outlining the risks associated with cryptocurrency investments for consumers in February.
The FTC is not the first agency run by the government to form a blockchain working group. In January of 2017, a similar initiative was announced by the State Department. In addition to this, the financial system assessing the risk to the financial system announced that it formed a cryptocurrency-focused working group in January this year.