Australian regulator cautions of potential crypto disasters if Trump relaxes regulations
The head of Australia’s competition regulator cautioned that US President Donald Trump’s promise to ease crypto regulations could result in “horror scenarios” for Australian consumers, leaving them more susceptible to investment scams.
Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC), expressed concerns that any loosening of regulations in the US could heighten the dangers associated with crypto-related fraud.
Cass-Gottlieb stated in an interview with ABC News:
“This is an environment — due to the sophistication of global crime, and also potentially due to regulatory changes — that we are definitely more worried about.”
Trump, a vocal supporter of cryptocurrency, aims to transform the US into the “crypto capital of the planet.” His administration has already started to create a more favorable regulatory environment for crypto.
This marks a notable departure from President Joe Biden, whose administration took legal action against major crypto companies and embraced a “regulation by enforcement” strategy, which received criticism.
Crypto scams remain a significant issue
According to ACCC data, Australian consumers fell victim to over $1.3 billion in investment scams in 2023, with crypto playing a significant role in either payments or fraudulent schemes.
As part of its focus for 2025-26, the ACCC is prioritizing financial fraud and scams as well as broader competition concerns in industries like aviation and retail.
The regulator has cautioned that if crypto regulations are relaxed in major markets such as the US, scammers could take advantage of the situation to deceive Australian investors.
Cass-Gottlieb’s comments come as Australia grapples with its own regulatory stance on digital assets, enforcing stricter licensing requirements for crypto service providers. However, advocates for consumer protection argue that more oversight is necessary to combat fraudulent activities.
The ACCC’s worries contribute to the ongoing global discussion on crypto regulation, as policymakers strive to strike a balance between innovation and financial security amidst the increasing adoption of digital assets.
Rise in scam activities
According to a report by Web3 security firm Cyvers, pig butchering scams were the prevalent form of crypto fraud in 2024, resulting in losses of $3.6 billion.
This long-standing method of fraud, involving the gradual manipulation of victims before coercing them into fraudulent investments, surpassed other types of crypto scams. Cyvers identified over 150,000 blockchain addresses associated with these scams, highlighting their widespread nature.
Scammers increasingly turned to dating apps and social media to entice victims, creating fake profiles to establish trust before persuading them to invest in deceitful platforms. Despite the rise in fraudulent activities, cyber investigators managed to recover $1.3 billion in stolen assets through on-chain tracking and bug bounty programs.
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