Australia’s head of competition regulators said President Donald Trump’s pledge to ease crypto regulations could lead to a “horror scenario” for Australian consumers by making it more vulnerable to investment fraud He warned.
Gina Cass Gottlieb, chairman of the Australian Competition and Consumer Commission (ACCC), said weakening of US surveillance could exacerbate risks related to crypto-related fraud.
Cass-Gottlieb told ABC News:
“This is the environment, the refinement of global crime, and we certainly have a growing concern due to the potential ‘liberation’ of regulations. ”
Having established himself as a candidate for Procrypt, Trump has pledged to turn the United States into the “crypto capital of the planet.” Under his new administration, the regulatory landscape is already beginning to move towards a more friendly environment of codes.
His stance presents a sharp contrast to President Joe Biden, who pursued legal action against major crypto companies and adopted a “regulation by enforcement” approach.
Crypto fraud is a big concern
Australian consumers lost more than $1.3 billion in investment fraud in 2023, according to ACCC data. This has been the key role of crypto as a payment method or as a subject of fraudulent schemes.
As part of its 2025-26 enforcement priorities, ACCC will focus on financial and fraud, along with broader competitive concerns in industries such as aviation and retail.
Regulators have warned that if crypto regulations are relaxed in major markets like the US, fraudsters could take advantage of the opportunity to fraudulent Australian investors.
Cass-Gottlieb’s remarks arise as Australia continues to discuss its own regulatory approach to digital assets. The country has introduced stricter licensing requirements for crypto service providers, but consumer protection advocates argue that more surveillance is needed to curb fraudulent schemes.
ACCC concerns add to the ongoing global debate on crypto regulations, balancing innovation and financial security amid the rise in mainstream adoption of digital assets, balancing policymakers.
The rising scam
According to a report by Web3 security company Cyvers, Pig Butching Scams ruled Crypto scams in 2024, accounting for a loss of $3.6 billion.
Long-term fraud methods in which victims are groomed over time before being forced into fraudulent investments outweigh other forms of crypto fraud. Cyvers traced these scams to over 150,000 blockchain addresses, highlighting the broad nature of the scheme.
Scammers have increasingly relied on apps and social media dating to seduce victims, creating fake profiles to build trust and persuading them to invest in fraudulent platforms. Despite the surge in fraudulent activity, cyber investigators recovered $1.3 billion of stolen assets through chain tracking and bug bounty programs.
It is mentioned in this article
