February 6, 2023

Australia Boosts Consumer Protection against Crypto Scams

Australia Boosts Consumer Protection against Crypto Scams Featured Image

The Australian government is expected to introduce new tools to the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, to protect consumers from crypto-related scams, which resulted in losses in crypto payments worth $221 million in 2022.

The real-time data-sharing tool will help the ACCC to detect and prevent crypto scams, in addition to boosting consumer protection.

Consumer protection will be enhanced through a framework that will regulate the licensing and custody of digital assets. This framework is scheduled to be launched by mid-2023.

The government also announced new measures that aim to protect consumers while dealing with cryptocurrencies and ensure proper risk disclosures from crypto firms, Cointelegraph reported.

Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones elaborated that the new measures are part of a multi-stage approach, which will be based on three elements, including boosting customer protection, setting up a framework for its token mapping reform, and promoting enforcement.

They pointed out that the multi-stage approach would lead to an increase in the size of the Australian Securities & Investments Commission (ASIC)’s digital assets team and upgrading enforcement measures. Both mentioned that ASIC’s team would concentrate on making sure of the disclosure of crypto products and service providers’ risks to consumers.

“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,” the treasurers said, adding:
We are acting swiftly and methodically to ensure that consumers are adequately protected and true innovation can flourish.”

The multi-stage approach plan was rapidly implemented after the collapse of FTX in November 2022 which harmed 132 Australian-based companies and more than 30,000 Aussies.

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