4 months ago
The caput of Australia’s contention regulator warned that US President Donald Trump’s pledge to unbend crypto regulations could pb to “horror scenarios” for Australian consumers by making them much susceptible to concern scams.
Gina Cass-Gottlieb, seat of the Australian Competition and Consumer Commission (ACCC), said immoderate weakening of oversight successful the U.S. could exacerbate the risks associated with crypto-related fraud.
Cass-Gottlieb told ABC News:
“This is an situation — due to the fact that of the sophistication of planetary crime, and besides due to the fact that perchance of regulatory ‘freeing up’ — that we surely person an enhanced concern.”
Trump, who has positioned himself arsenic a pro-crypto candidate, has promised to crook the US into the “crypto superior of the planet.” Under his caller administration, the regulatory scenery has already begun to displacement toward a friendlier situation for crypto.
His stance marks a crisp opposition from President Joe Biden, whose medication pursued ineligible enactment against large crypto firms and adopted a “regulation by enforcement” approach, which drew wide criticism.
Crypto scams are a large concern
According to ACCC data, Australian consumers mislaid much than $1.3 cardinal to concern scams successful 2023, with crypto playing a important relation — either arsenic a outgo method oregon arsenic the taxable of fraudulent schemes.
As portion of its enforcement priorities for 2025-26, the ACCC is focusing connected fiscal fraud and scams alongside broader contention concerns successful industries specified arsenic aviation and retail.
The regulator has warned that if crypto regulations are loosened successful large markets similar the US, scammers whitethorn exploit the accidental to defraud Australian investors.
Cass-Gottlieb’s remarks travel arsenic Australia continues to statement its ain regulatory attack to integer assets. The state has introduced stricter licensing requirements for crypto work providers, but user extortion advocates reason that much oversight is needed to curb fraudulent schemes.
The ACCC’s concerns adhd to the ongoing planetary statement implicit crypto regulation, with policymakers balancing innovation and fiscal information amid rising mainstream adoption of integer assets.
Scams connected the rise
According to a study by Web3 information steadfast Cyvers, pig butchering scams dominated crypto fraud successful 2024, accounting for $3.6 cardinal successful losses.
The semipermanent fraud method, wherever victims are groomed implicit clip earlier being coerced into fraudulent investments, surpassed different forms of crypto scams. Cyvers traced these scams to implicit 150,000 blockchain addresses, highlighting the scheme’s widespread nature.
Scammers progressively relied connected dating apps and societal media to lure victims, creating fake profiles to physique spot earlier persuading them to put successful fraudulent platforms. Despite the surge successful fraudulent activity, cyber investigators recovered $1.3 cardinal successful stolen assets done on-chain tracking and bug bounty programs.
The station Australian regulator warns of crypto ‘horror scenarios’ if Trump loosens regulation appeared archetypal connected CryptoSlate.
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