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Crypto Caution: ACCC Chair Flags Risks as Trump Proposes Deregulation
- The ACCC has called Donald Trump’s potential loosening of crypto regulations a ‘nightmare’ scenario for the Australian watchdog.
- The agency is concerned that Australians will be targeted intensely by investment scammers if policies are relaxed.
- However, doing away with a ‘regulation by enforcement’ stance does not necessarily equate to deregulation entirely.
- Meanwhile, both Australian parties ponder how to address the growing digital asset sector as the election draws near.
The world is steadily becoming more accustomed to cryptocurrency, with sweeping regulatory reform likely to hit the United States under Donald Trump.
Meanwhile, it looks like both Australian political parties will follow suit, promising policy changes for the crypto industry under the next Government.
But not everybody is happy about this.
The Australian Competition and Consumer Commission (ACCC) Chair, Gina Cass-Gottlieb, reported to the ABC that ‘any weakening of [crypto] regulation is of concern to us’.
Related: RBA Cuts Interest Rate, Pours Water Over Hopes of Future Cuts as Bitcoin Stumbles
ACCC Concerned Lax Regulations Could Cause Investment Scam Boom
The report comes in response to potential regulation moves from the United States under the Donald Trump administration.
This has caused significant concern among certain Australian agencies, including the ACCC. Primarily, the team is worried that lax crypto regulations may cause a spike in global investment scams using digital assets.
[The crypto sector] is an environment that we certainly have an enhanced concern, because of the sophistication of global crime and the potential for regulatory freeing up.
ACCC Chair Gina Cass-Gottlieb Prohibition or Education: What’s the Path Forward to Tackle Scammers?
Although the comments go against the global trend of crypto acceptance, at their core, they seem fair enough – consumers need to be protected from investment scams, the prevalence of which is rising in Australia.
However, fostering an innovative environment for Web3 technology does not necessarily equal deregulation, as the ACCC Chair seems to imply.
In fact, greater regulatory clarity among the industry could, in fact, improve scam numbers within the crypto space.
Adding more reputable players to the blockchain sector (institutional and government) and increasing education and awareness are both likely to be as – or even more – effective at preventing crypto scams than prohibitive policies.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
