The top of Australia’s competitors regulator warned that US President Donald Trump’s pledge to loosen up crypto laws might result in “horror eventualities” for Australian shoppers by making them extra susceptible to funding scams.
Gina Cass-Gottlieb, chair of the Australian Competitors and Shopper Fee (ACCC), stated any weakening of oversight within the US might exacerbate the dangers related to crypto-related fraud.
Cass-Gottlieb instructed ABC Information:
“That is an atmosphere — due to the sophistication of worldwide crime, and in addition as a result of doubtlessly of regulatory ‘liberating up’ — that we definitely have an enhanced concern.”
Trump, who has positioned himself as a pro-crypto candidate, has promised to show the US into the “crypto capital of the planet.” Beneath his new administration, the regulatory panorama has already begun to shift towards a friendlier atmosphere for crypto.
His stance marks a pointy distinction from President Joe Biden, whose administration pursued authorized motion in opposition to main crypto corporations and adopted a “regulation by enforcement” strategy, which drew widespread criticism.
Crypto scams are a serious concern
Based on ACCC knowledge, Australian shoppers misplaced greater than $1.3 billion to funding scams in 2023, with crypto enjoying a big position — both as a cost methodology or as the topic of fraudulent schemes.
As a part of its enforcement priorities for 2025-26, the ACCC is specializing in monetary fraud and scams alongside broader competitors considerations in industries corresponding to aviation and retail.
The regulator has warned that if crypto laws are loosened in main markets just like the US, scammers might exploit the chance to defraud Australian traders.
Cass-Gottlieb’s remarks come as Australia continues to debate its personal regulatory strategy to digital belongings. The nation has launched stricter licensing necessities for crypto service suppliers, however shopper safety advocates argue that extra oversight is required to curb fraudulent schemes.
The ACCC’s considerations add to the continued world debate over crypto regulation, with policymakers balancing innovation and monetary safety amid rising mainstream adoption of digital belongings.
Scams on the rise
Based on a report by Web3 safety agency Cyvers, pig butchering scams dominated crypto fraud in 2024, accounting for $3.6 billion in losses.
The long-term fraud methodology, the place victims are groomed over time earlier than being coerced into fraudulent investments, surpassed different types of crypto scams. Cyvers traced these scams to over 150,000 blockchain addresses, highlighting the scheme’s widespread nature.
Scammers more and more relied on relationship apps and social media to lure victims, creating pretend profiles to construct belief earlier than persuading them to spend money on fraudulent platforms. Regardless of the surge in fraudulent exercise, cyber investigators recovered $1.3 billion in stolen belongings via on-chain monitoring and bug bounty applications.
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