On May 31, Choice, an Australian consumer advocacy group, urged the new Labor administration to prioritise cryptocurrency legislation, according to the Australian Associated Press. The proposal for regulation comes amid investor concerns about investor security following a few recent crypto exchange collapses and an increase in crypto fraud detected by Choice, according to the report.
Patrick Veyret, a representative for Choice, stated:
“Choice is hearing from many Australians about financial loss and other harm caused by purchasing crypto assets that were not what they appeared to be. We’ve seen a number of recent collapses of exchanges where people have lost all of their savings with no ability to get their money back. “
Crypto-related crime is on the increase in Australia, as it is across the world. According to the AAP report, the Australian Competition and Consumer Commission received over 10,000 crypto fraud allegations in 2021. The total loss from these scams is estimated to be $92.8 million.
While the losses are minor in comparison to the $14 billion collected by crypto fraudsters worldwide last year, they are still notable.
MyCryptoWallet, an Australian exchange, stops operations in December 2021. Blockchain Global Limited declared bankruptcy in October 2021, owing investors around $15 million (AU $21 million). The ACX Exchange, which was previously run by Blockchain Global, closed in early 2020, leaving 200 investors with a $7 million (AU $10 million) deficit.
Choice wants exchanges and custodians to be subject to legal obligations such as market integrity standards and reporting requirements. The consumer organisation also wants market manipulation to be prohibited.
Choice supports the ban of misleading and deceptive conduct, as well as unfair contract conditions, because celebrity endorsements and hyped-up marketing have frequently tempted Australians to acquire cryptocurrencies.
