Australia Strengthens Crypto Watchdogs In “Multi-Stage” Scam-Fighting Strategy

Key Points:

• As part of a “multi-stage approach” to cracking down on cryptocurrency and ensuring proper risk disclosures from crypto businesses, the Australian government is expanding its market regulator’s digital asset unit.
• The Australian Securities & Investments Commission’s (ASIC) digital assets unit will grow in size, and “upping enforcement measures” will be one of the major improvements.

As part of a “multi-stage approach” to cracking down on cryptocurrency and ensuring proper risk disclosures from crypto businesses, the Australian government is expanding its market regulator’s digital asset unit.

The new regulations are meant to safeguard consumers interacting with cryptocurrencies, according to a joint statement released on February 2 by Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones.

The multi-stage strategy, according to the treasurers, would include three components: improved enforcement, improved consumer protection, and the creation of a framework for token mapping reform.

The Australian Securities & Investments Commission’s (ASIC) digital assets unit will grow in size, and “upping enforcement measures” will be one of the major improvements.

According to Chalmers and Jones, ASIC will concentrate on making sure that consumers are properly informed about the hazards associated with crypto products and service providers.

The Australian Competition and Consumer Commission (ACCC), the nation’s competition watchdog, will soon receive new powers from the government to better defend consumers from scams involving cryptocurrencies. It said that $221 million was lost to scams involving cryptocurrency payments in 2022.

The new technology will be a real-time data-sharing tool that the ACCC will employ to recognize and stop cryptocurrency scams.

A framework to control the licensing and custody of digital assets will be finalized, which will strengthen consumer protection by “ensuring customers are safeguarded against avoidable business failures or from the misuse of their assets by service providers.”

However, the implementation of this framework as law won’t start until the middle of 2023, which is a long way off.

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