Amplified Bitcoin Acceptance Heightened Tensions for Fraud
Australian financial crime authorities have issued a warning that the amplifying size of the digital currency market is creating opportunities for fraudulent activities. The global acceptance of Bitcoin is multiplying the risk.
According to Austrac, criminals are making continuous efforts to exploit cryptocurrency transactions, payment channels, and digital ledgers. In all these cases, the parties involved are often not aware of the transaction history.
While DEXs (digital exchanges) are required to register with Austrac, the nature of encrypted digital currencies creates hindrance in supervision, Thus, the government is majorly skeptical of authenticity.
The worldwide growth in the popularity of cryptocurrency seems to have no intentions of slowing down. Recently, El Salvador made bitcoin its official currency along with USD to enhance the market of cryptocurrency, considering it as the future of finance.
The growth perspective of cryptocurrency entails the risk of crime and fraud. The more popular these currencies become, the risk would be at least ten times more.
According to the CEO of Fintech Australia, Rebecca Schot-Guppy, the authorities regulating crypto will enhance themselves and move to more dynamic ways to get ahead of the technology. It seems essential to evolve owing to the currency dynamics between crypto users, industry, and government.
She added that she suspects cryptocurrency has improved the space regulators and allowed the tech to evolve in respect to the challenges and establish fresh regulations accordingly.
The global conflict between financial entrepreneurs and authorities is on display in Australia, in which the progressive financial services sector has been at odds with the banking system, following the worldwide success of BNPL business Afterpay’s buyout by Square.