Crypto Industry Seeks Greater Transparency to Regain Public Trust After Recent Scandals
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Revelations last year of fraud and deception have shaken public trust in crypto trading platforms. Transparency and investor protection are vital to regain trust.
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Proof of Reserves Reporting and Off-Chain Transaction Reporting proposals would immediately improve transparency to protect customer funds.
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The PROOF Act would require trading platforms to cryptographically prove monthly they can honor customer deposits.
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The Off-Chain Digital Commodity Transaction Reporting Act would require trading platforms to report all digital asset transactions to improve transparency.
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Proof of Reserve and off-chain transaction reporting offer reasonable transparency approaches. Policymakers should work with the industry as it tries to regain lost trust.