"ACCC Chair Warns: US Crypto Relaxation Threatens Aussie Consumers"

The chair of Australia’s competition regulator, Gina Cass-Gottlieb, has expressed concern about potential "horror scenarios" for Australian consumers if US President Donald Trump follows through on his pledge to relax crypto regulations. Cass-Gottlieb, who heads the Australian Competition and Consumer Commission (ACCC), warned that a loosening of oversight in the US could exacerbate the risks associated with crypto-related fraud, making Australian consumers more vulnerable to investment scams.

In an interview with ABC News, Cass-Gottlieb emphasized the global nature of financial crime and the potential impact of regulatory changes in major markets like the US on Australian investors. She stated, "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, a self-proclaimed pro-crypto candidate, has vowed to transform the US into the "crypto capital of the planet." His administration has already begun to shift the regulatory landscape toward a more crypto-friendly environment, marking a stark contrast to the approach taken by President Joe Biden, who pursued legal action against major crypto firms and adopted a "regulation by enforcement" strategy.

Crypto scams have emerged as a significant concern for Australian consumers, with losses exceeding $1.3 billion in 2023, according to ACCC data. Crypto plays a significant role in these scams, either as a payment method or as the subject of fraudulent schemes. In response, the ACCC has identified financial fraud and scams as enforcement priorities for 2025-26, alongside broader competition concerns in industries such as aviation and retail.

The ACCC's concerns come as Australia continues to debate its own regulatory approach to digital assets. While the country has introduced stricter licensing requirements for crypto service providers, consumer protection advocates argue that more oversight is needed to curb fraudulent schemes. The global debate over crypto regulation remains ongoing, as policymakers strive to balance innovation and financial security amid rising mainstream adoption of digital assets.

A report by Web3 security firm Cyvers highlights the growing threat of pig butchering scams, which dominated crypto fraud in 2024, accounting for $3.6 billion in losses. This long-term fraud method involves grooming victims over time before coercing them into fraudulent investments. Scammers increasingly rely on dating apps and social media to lure victims, creating fake profiles to