Austrian Crypto Regulators Call for Tougher Laws as Crypto Fraud Rises

Crypto fraud has been on a steady rise in Russia

  • Crypto regulators have called for a firm regulation of digital assets in the nation
  •     The citizens still enjoy the benefits of crypto use amidst rise in fraud case

Austria has been seeing a steady growth in Crypto scams recently. Regulators in Austria have called for laws that constrict crypto fraud in the nation. The incidence of crypto scams has been a source of worry, as these scammers are taking advantage of the fact that cryptocurrency is untraceable and unregulated.

On Friday, Bloomberg claimed that over 60% of reported cases of fraud involved cryptocurrency, according to the Financial Market Authority of Austria. They claimed that the scammers utilize social media platforms, such as Tiktok and Telegram to market their deceptive products to unsuspecting victims.

Crypto Regulators ‘Cry For Help’

The spokesperson of the FMA, Klaus Grubelink, commented on the dire need for stern regulation of cryptocurrency to shut down the occurrence of these crypto fraud cases to the barest minimum. He said that the need for firm regulation cannot be over-emphasized. Offering fake returns for gold and stocks is not new, but these scams are gaining a new face because of the recent hype of cryptocurrency.

The increase in the reports of crypto-related scams in 2020 can be relatively tied to the general surge in crypto fraud, especially during the advent of the coronavirus outbreak the year before.

The battle for regulation is not a new thing in Austria. The nation’s minister of Finance, Hartwig Löger, called for the regulation of cryptocurrency by the pan-European Union back in 2018. His reason for this was to curb money laundering in the nation. Löger made these comments amid the uproar of a crypto-related pyramid scheme called Optioment Bitcoin that saw the victims lose over 12,000 BTC.

Crypto Usage Still Thriving Amidst Crypto Regulator Shouts

However, even though there are shouts raised for crypto regulation, the nation’s exchange brokers are still working towards creating a seamless avenue for the trading of cryptocurrency. Exchanges such as Vienna Stock Exchange recently listed several products that can be traded with crypto. The traditional market has also made crypto a payment option, enabling ease of transaction for any buying customer.

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