Australia Launches Massive Fight Against Crypto Fraud
2023.02.03 04:15
Australia Launches Massive Fight Against Crypto Fraud
By Tiffany Smith
Budrigannews.com – As part of a “multi-stage approach” to crack down on cryptocurrencies and ensure that crypto firms properly disclose risks, the Australian government is expanding the digital asset team of its market regulator.
The new measures are meant to safeguard cryptocurrency customers, as stated in a joint statement issued on February 2 by Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones.
The treasurers stated that the three components of the multi-stage strategy would be bolstering consumer protection, strengthening enforcement, and establishing a framework for its token mapping reform.
This is why we’re taking action on crypto. pic.twitter.com/17HG5nhsTz
The Australian Securities & Investments Commission (ASIC)’s digital assets team will be expanded, and “upping enforcement measures” will be one of the main changes.
According to Chalmers and Jones, ASIC would concentrate on ensuring that crypto product and service provider risks to consumers are appropriately disclosed.
Cointelegraph attempted to contact ASIC to determine the number of vacant positions, but did not receive a response right away.
In the meantime, the Australian Competition and Consumer Commission (ACCC), the nation’s competition regulator, will receive new tools to safeguard consumers from crypto-related scams. It said that in 2022, scam losses from crypto payments totaled $221 million.
The ACCC will use the new tool, which will be a real-time data sharing tool, to find and stop crypto scams.
When a framework to regulate the licensing and custody of digital assets is finalized, consumer protection will also be strengthened to “ensure consumers are protected from avoidable business failures or from the misuse of their assets by service providers.”
However, this framework will not begin until the middle of 2023, and it will likely take a long time to become law.
The treasurers added, “The previous government dabbled in crypto policy but never took the time to future-proof our regulatory frameworks to protect consumers and guide this new and emerging class of assets.”
To ensure that customers are adequately protected and true innovation can flourish, we are moving quickly but methodically.
On February 2, the Australian Treasury released its token mapping consultation paper, which aims to ascertain which aspects of the cryptocurrency ecosystem will be regulated and how much.
Open consultation! The consultation paper for token mapping was made public today. This consultation is one step in a series of reforms meant to establish a suitable regulatory framework for the crypto industry. Read the paper and share your thoughts at @ASIC_Connect @AUSTRAC
The catastrophic collapse of FTX in November, which impacted over 30,000 Australians and 132 Australian-based businesses, accelerated the multi-stage approach plan.
More:
CryptoZoo and Logan Paul may be involved in crypto fraud.
U. S. will begin checking against Silvergate in FTX case
