Calls to regulate crypto markets as Australians jump in, scams surge

That’s according to a survey from consumer watchdog group Choice, which released the findings.

But despite the growing popularity, Choice has raised fears on how aggressive marketing for cryptocurrencies is leaving Australians exposed.

Choice senior policy advisor Patrick Veyret said Australian laws are lagging behind the crypto market.

“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,” Veyret said.

“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.”

He also warned of a “huge surge” in scams on crypto exchanges.

“The people who push these products tend to overestimate the potential upside while minimising the risks to consumers,” he said.

“Crypto assets can be volatile, complex and high-risk products that are causing greater harm to the community as more and more people are risking their livelihoods based on misrepresentations and marketing.”

Choice is calling on ASIC to be granted powers to ban harmful crypto assets from being sold to retail investors.

They flagged that the incoming government was well-placed to make changes.

Meanwhile, crypto industry figures have spoken on what they hope will come from the Albanese government.

Kraken’s Australian managing director Jonothan Miller has called for the government to support the country becoming a market leader in fintech and crypto and blockchain technology.

“Australian entrepreneurs enjoy an open playing field for crypto and we are encouraged by the positive industry consultation on the development of future regulation,” Miller said.

“It’s critically important for the growth of a fledgling industry that the regulatory strategy allows for innovation and competition so that local projects can flourish without overburdensome requirements.”

Dacxi CEO Ian Lowe called for the creation of evidence-based framework for the banking industry in dealing with blockchain businesses.

“The incoming government needs to move swiftly to provide a clear roadmap and a timeframe for the regulation of crypto assets,” he said.

“Lack of regulation continues to negatively impact investors, institutions and the industry itself.”

Ethereum has fallen by even more in the same amount of time.