Simon Callaghan, the new CEO of Blockchain Australia, is urging Australia’s institutions, government, and the crypto industry to work together to combat the rise of cryptocurrency scams.
June 30, on the final day of Australian Blockchain Week in Melbourne, Callaghan announced that the association will now focus on preventing crypto-related frauds, among other initiatives.
“We will have to collaborate with the financial industry. “We’re going to have to work with the government to protect consumers,” the CEO said, emphasizing the need to do so.
Callaghan noted that frauds frequently originate on social media or through telecommunication channels and that regulating efforts must begin at the initial point of contact.
“Crypto is either an exit point or minor piece in the lifecycle of the scam, the scam happens much further up the chain.”
The CEO remarked that only some nations have thus far been able to cooperate effectively to combat cryptocurrency scams. Still, he expressed optimism that Australia will overcome this barrier and serve as a model for other jurisdictions.
“If we can take some leadership on that in Australia, I think we can certainly take that forward globally as well.”
In the past month, cryptocurrency-related schemes have dominated the news in Australia. Since May, two of Australia’s largest banks have implemented restrictions or outright bans on certain payments made to cryptocurrency exchanges, citing the escalating fraud risk.
The Australian Competition and Consumer Commission (ACCC), the country’s consumer protection agency, will launch its National Anti-Scam Center on July 1.
According to the ACCC, the NASC will pool knowledge and resources to prevent fraudsters from contacting Australians and educate consumers on avoiding becoming victims.
Trevor Power, assistant secretary of the Australian Treasury, said on June 26 that the Australian government is investing significantly in reducing scams and that the NASC will focus on cryptocurrency-related scams.
“I think it has been pointed out that crypto at the moment is a significant vector for scams, and so obviously, it’s part of the center of their work; they will also be focusing on crypto.
This week, Blockchain Australia announced that it would examine scam data collected from cryptocurrency exchanges and then share the best practices for preventing scams and deception.
Blockchain Australia is the leading blockchain industry association in Australia. According to the organization’s website, 111 blockchain-based businesses in Australia are represented by the organization.
