Australia Bolsters Crypto Watchdogs In ‘Multi-Stage’ Plan To Battle Scams

The New Measures from the Australian Government come as Cryptocurrency Scams soar 162% to $221 million out of 2022.

The Australian Government is supporting its market regulator’s digital asset team as part of a “multi-stage approach” Aimed at clamping down on crypto and Guaranteeing proper risk Divulgences from Crypto firms.

The New Measures are aimed to protect consumers dealing with Cryptocurrency. The treasurers said the multi-stage approach would include three components, including reinforcing enforcement, supporting consumer protection, and laying out a framework for its token mapping reform.

One of the main changes will be an increase in the size of the Australian Securities and Investments Commission (ASIC’s) digital assets team and “upping enforcement measures.”

Chalmers and Jones said that ASIC would focus on guaranteeing that the risks to consumers from crypto products and service providers are Appropriately Disclosed.

Cointelegraph reached out to ASIC to figure out the number of additional positions that will be filled yet didn’t receive an immediate reaction.

In the interim, the government is set to give new tools to the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, to protect consumers from crypto-related scams. It noted scam losses including crypto payments totaled $221 million out of 2022.
The new tool will come as an ongoing data-sharing tool that the ACCC will use to identify and prevent Crypto Scams.

Consumer protection will also be supported when a framework is concluded to regulate the permitting and custody of digital assets to, “Guarantee consumers are protected from preventable business failures or the misuse of their money by service providers,” says the organization’s “guarantee.

However, this framework will not start until mid-2023, and will probably take considerable time before being implemented into legislation.
“The past government fiddled with Crypto policy yet never took the opportunity 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 guarantee that consumers are adequately protected and true innovation can thrive.”

The consultation paper was released by the Australian Treasury. 2, Which attempts to determine which elements of the Cryptocurrency Ecosystem will be regulated and to what degree.
The multi-stage approach plan was fast-followed after the catastrophic collapse of FTX in November, which impacted north of 30,000 Aussies and 132 Australian-based companies.