Regulation Enhancement Proposal Amid the Surge in Cryptocurrency Fraud Victims

The threat of cryptocurrency investment scams faced by American citizens is greater than imagined. Data shows that the amount of damage in 2024 has reached $9.3 billion, a 66% increase year-over-year, highlighting the seriousness of this issue. As scammers become more sophisticated, government agencies are beginning to strengthen their countermeasures.

**Establishment of Regulatory Frameworks through New Legislation**

Democratic Representative Elissa Slotkin and Republican Representative Jerry Moran introduced a new legal framework to Congress earlier this month to combat illegal activities related to cryptocurrencies. This "SAFE Act" (Secure and Fair Enforcement for Cryptocurrency Act) proposes an integrated approach to address cryptocurrency-related crimes that current regulatory systems cannot adequately handle.

The core of the bill emphasizes strengthening public-private cooperation among agencies from the U.S. Department of the Treasury to enforcement agencies and regulatory authorities. By sharing information and coordinating policies, an environment will be established to more effectively crack down on scams exploiting cryptocurrencies.

**Debate Over the Effectiveness of Legal Measures**

Gabriel Shapiro, Chief Legal Officer at Delphi Labs, points out that if this bill is strictly enforced, those involved in cryptocurrency scams will face significant threats. It is expected that heads of various agencies, including the Department of Justice, the Financial Crimes Enforcement Network (FinCEN), and the Secret Service, will be directly involved in tracking cryptocurrency crimes, enabling more advanced investigative capabilities than before.

Legal experts believe that if such a multi-agency cooperation system is realized, the speed of resolving virtual currency fraud cases could dramatically improve. Lawyers also argue that the victim relief process should be simultaneously strengthened, emphasizing that protecting victims' rights should be a key focus alongside arresting perpetrators.

The maturation of the cryptocurrency market depends on the development of such a legal environment. Strengthening regulations will deter malicious scams, improve market trustworthiness, and create an environment where genuine investors can participate more confidently.