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Australia bolsters crypto watchdogs in ”multi-stage’ plan to combat scams

ETHHERO February 3, 2023 2 min read



The Australian authorities is bolstering its market regulator’s digital asset staff as a part of a “multi-stage strategy” aimed toward clamping down on crypto and guaranteeing correct threat disclosures from crypto companies.

A Feb. 2 joint statement by Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones defined that the brand new measures are aimed toward defending customers coping with cryptocurrency.

The treasurers mentioned the multi-stage strategy would contain three parts, together with strengthening enforcement, bolstering client safety, and establishing a framework for its token mapping reform.

One of many predominant modifications will likely be a rise within the measurement of the Australian Securities & Investments Fee (ASIC)’s digital property staff and “upping enforcement measures.”

Chalmers and Jones mentioned ASIC would deal with guaranteeing dangers to customers by crypto merchandise and repair suppliers are appropriately disclosed.

Cointelegraph reached out to ASIC to learn how many extra positions will likely be crammed however didn’t obtain an instantaneous response.

In the meantime, the federal government is about to provide new instruments to the Australian Competitors and Shopper Fee (ACCC), the nation’s competitors watchdog, to guard customers from crypto-related scams. It famous rip-off losses by crypto funds totaled $221 million in 2022.

The brand new instrument will come within the type of a real-time data-sharing instrument that the ACCC will use to determine and forestall crypto scams.

Shopper safety may also be bolstered when a framework is finalized to control the licensing and custody of digital property to “guarantee customers are shielded from avoidable enterprise failures or from the misuse of their property by service suppliers.”

This framework is not going to nonetheless start till mid-2023, and can seemingly take appreciable time earlier than it’s carried out into laws.

Associated: An overview of the cryptocurrency regulations in Australia

“The earlier authorities dabbled in crypto coverage however by no means took the time to future‑proof our regulatory frameworks to guard customers and information this new and rising class of property,” mentioned the treasurers, including:

We’re appearing swiftly and methodically to make sure that customers are adequately protected and true innovation can flourish.”

The Australian Treasury released its token mapping session paper on Feb. 2, which makes an attempt to find out which parts of the cryptocurrency ecosystem will likely be regulated and to what extent.

The multi-stage strategy plan was fast-tracked by the catastrophic collapse of FTX in November which impacted over 30,000 Aussies and 132 Australian-based companies.