The head of Australia’s competition regulator warned that US President Donald Trump’s pledge to relax crypto regulations could lead to “horror scenarios” for Australian consumers by making them more vulnerable to investment scams.
Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC), said any weakening of oversight in the US could exacerbate the risks associated with crypto-related fraud.
Cass-Gottlieb told ABC News:
“This is an environment — because of the sophistication of global crime, and also because potentially of regulatory ‘freeing up’ — that we certainly have an enhanced concern.”
Trump, who has positioned himself as a pro-crypto candidate, has promised to turn the US into the “crypto capital of the planet.” Under his new administration, the regulatory landscape has already begun to shift toward a friendlier environment for crypto.
His stance marks a sharp contrast from President Joe Biden, whose administration pursued legal action against major crypto firms and adopted a “regulation by enforcement” approach, which drew widespread criticism.
Crypto scams are a major concern
According to ACCC data, Australian consumers lost more than $1.3 billion to investment scams in 2023, with crypto playing a significant role — either as a payment method or as the subject of fraudulent schemes.
As part of its enforcement priorities for 2025-26, the ACCC is focusing on financial fraud and scams alongside broader competition concerns in industries such as aviation and retail.
The regulator has warned that if crypto regulations are loosened in major markets like the US, scammers may exploit the opportunity to defraud Australian investors.
Cass-Gottlieb’s remarks come as Australia continues to debate its own regulatory approach to digital assets. The country has introduced stricter licensing requirements for crypto service providers, but consumer protection advocates argue that more oversight is needed to curb fraudulent schemes.
The ACCC’s concerns add to the ongoing global debate over crypto regulation, with policymakers balancing innovation and financial security amid rising mainstream adoption of digital assets.
Scams on the rise
According to a report by Web3 security firm Cyvers, pig butchering scams dominated crypto fraud in 2024, accounting for $3.6 billion in losses.
The long-term fraud method, where victims are groomed over time before being coerced into fraudulent investments, surpassed other forms of crypto scams. Cyvers traced these scams to over 150,000 blockchain addresses, highlighting the scheme’s widespread nature.
Scammers increasingly relied on dating apps and social media to lure victims, creating fake profiles to build trust before persuading them to invest in fraudulent platforms. Despite the surge in fraudulent activity, cyber investigators recovered $1.3 billion in stolen assets through on-chain tracking and bug bounty programs.
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