The government is trying to tighten the rules on crypto

Stricter regulations for the burgeoning cryptocurrency market are being introduced to protect the estimated one million Australians trying their hand at the sector.

Treasurer Jim Chalmers announced a series of actions on Friday, including strengthening crypto vendor enforcement and strengthening consumer protections.

The regulations follow last year’s spectacular collapse of FTX, one of the world’s largest cryptocurrency exchanges, which left thousands of Australian investors out of pocket.

Market watchdogs around the world are concerned that people are entrusting their digital assets to a trading platform, mistakenly believing they have the same protections as buying stocks online.

Finance Services Secretary Stephen Jones said the reform would protect crypto-curious Australians and mitigate risks to the economy.

“[It’s about]protecting consumers, protecting our financial system and fighting criminals,” he told ABC TV on Friday.

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As part of the changes, financial regulator ASIC will expand its cryptocurrency team and work to educate consumers about financial risks, while the government will set standards for crypto asset providers.

With more than $221 million paid for crypto asset scams in 2022, the announcement also outlined an increase in anti-fraud efforts by the Consumer Protection Agency and the National Anti-Scams Center, facilitating real-time data sharing to prevent and disrupt fraud.