The top of Australia’s competitors regulator warned that US President Donald Trump’s pledge to calm down crypto rules may result in “horror eventualities” for Australian customers by making them extra susceptible to funding scams.
Gina Cass-Gottlieb, chair of the Australian Competitors and Shopper Fee (ACCC), mentioned any weakening of oversight within the US may exacerbate the dangers related to crypto-related fraud.
Cass-Gottlieb instructed ABC Information:
“That is an setting — due to the sophistication of worldwide crime, and in addition as a result of probably of regulatory ‘liberating up’ — that we actually 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.” Underneath his new administration, the regulatory panorama has already begun to shift towards a friendlier setting for crypto.
His stance marks a pointy distinction from President Joe Biden, whose administration pursued authorized motion towards main crypto corporations and adopted a “regulation by enforcement” strategy, which drew widespread criticism.
Crypto scams are a significant concern
In line with ACCC information, Australian customers misplaced greater than $1.3 billion to funding scams in 2023, with crypto enjoying a major position — both as a cost technique 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 equivalent to aviation and retail.
The regulator has warned that if crypto rules are loosened in main markets just like the US, scammers could 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 international debate over crypto regulation, with policymakers balancing innovation and monetary safety amid rising mainstream adoption of digital belongings.
Scams on the rise
In line with 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 technique, 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 faux 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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