A London-based attorney, Dr. Jonathan Levy, requested that the EU committee start-up a superfund to help victims of crypto scams. The parliament's petitions team decided, however, to reject Levy’s petition. The reason the petition was rejected as stated by European committee officials, is an existing number of laws involving criminal activity, theft and fraud, which could link to crypto scams. Levy is particularly harsh when talking about the Onecoin Ponzi, as the company still functioning despite allegations against some of its owners. Levy has vowed to call on other victims of cryptocurrency-related crime and civil fraud to support the next petition.
Why it matters: As cryptocurrency becomes more popular, there will no doubt be a rise in bad actors operating at the fringes of the industry. As governments attempt to control the crypto space, many people may fall victim to scams that prey of their lack of knowledge. Instead of trying to control the crypto space, governments should spend time educating the public on cryptos, and how to safely buy and use them. There are legitimate crypto service providers in most advanced economies, and they have taken the time to follow all the regulations that are applicable. Any company that plays by the rules should be rewarded, as it is very easy to do business with non-regulated entities in the crypto space.