The head of Australia’s competition regulator has issued a stark warning about the potential consequences of US President Donald Trump’s plans to relax crypto regulations. Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC), expressed concerns that any weakening of oversight in the US could expose Australian consumers to increased risks of falling victim to investment scams.
In an interview with ABC News, Cass-Gottlieb emphasized the growing sophistication of global crime and the potential impact of regulatory changes on consumer protection. She highlighted the need for heightened vigilance in the face of a shifting regulatory landscape in the US.
President Trump, known for his pro-crypto stance, has vowed to transform the US into the “crypto capital of the planet.” This shift in approach stands in stark contrast to the policies of President Joe Biden, whose administration took a more aggressive stance on crypto regulation.
The ACCC has reported that Australian consumers lost over $1.3 billion to investment scams in 2023, with crypto-related fraud playing a significant role in these losses. As part of its enforcement priorities for the coming year, the ACCC is focusing on combating financial fraud and scams, with a particular emphasis on the crypto sector.
The regulator is particularly concerned that a relaxation of crypto regulations in major markets like the US could create opportunities for scammers to target Australian investors. This warning comes at a time when Australia is grappling with its own regulatory approach to digital assets, with calls for stronger protections for consumers.
The rise in crypto-related fraud is a global phenomenon, with scammers using increasingly sophisticated tactics to dupe unsuspecting victims. According to a report by Web3 security firm Cyvers, pig butchering scams have become prevalent in the crypto space, resulting in billions of dollars in losses. These scams involve grooming victims over time before convincing them to invest in fraudulent schemes.
Despite the surge in fraudulent activity, efforts to combat crypto scams have seen some success. Cyber investigators have managed to recover a significant amount of stolen assets through on-chain tracking and bug bounty programs.
As the debate over crypto regulation continues to unfold, policymakers face the challenge of striking a balance between fostering innovation and safeguarding financial security. The ACCC’s concerns underscore the need for coordinated efforts to protect consumers from the growing threat of crypto-related fraud.