Australia’s Securities and Investment Commission (ASIC) has shut down 615 crypto scam websites over the past year, according to an Aug. 19 statement.

This action is part of a broader effort to combat investment fraud in the country. The regulator closed 7,300 scam websites, including 5,530 fake investment platforms and 1,065 phishing sites.

Over $1 billion lost

ASIC cited the surge in investment scams as the reason for these takedowns, revealing that such scams resulted in approximately $1.3 billion in losses in 2023. The regulator emphasized that shutting down these sites helps disrupt the connection between scammers and potential victims.

Sarah Court, ASIC’s Deputy Chair, highlighted that scammers exploit Australians, stealing billions each year. She noted that while technology offers many benefits, it also provides new avenues for fraud.

Court further stressed the importance of swiftly removing these sites to protect Australians, with an average of 20 investment scam websites being taken down daily. She added:

“Scammers will continue to adapt and find new ways to lure consumers, and ASIC remains proactive in detecting and disrupting investment scams.”

Among the removed sites was Dexa Trade Markets, which ASIC identified as a crypto scam platform. The regulator acted after an Australian consumer reported falling victim to a crypto investment scam falsely claiming international regulation, high trading volumes, and millions of investors.

Crypto scams

Australia’s regulatory action reflects how crypto scams continue to be a major issue hampering the industry’s growth.

California’s Department of Financial Protection and Innovation (DFPI) data revealed that fraudulent trading platforms made up 87% of all reported crypto scams in 2024.

According to the regulator:

“Imposter websites are one of the most common reported scams.”

Malicious players try to take advantage of confusion generated by creating companies or websites with names that look or sound like those of other companies or websites that also operate in the marketplace.

Australia’s Securities and Investments Commission (ASIC) has filed a lawsuit against the Australia Securities Exchange (ASX) Ltd., accusing it of misleading statements about its blockchain trade settlement project, according to an Aug. 14 statement.

False statements

ASIC claims the ASX falsely stated in February 2022 that its project was “on track” for an April 2023 launch and that it was “progressing” when, in reality, it was not. The regulator argued that these statements were deceptive since the project was not meeting its milestones and was ultimately canceled.

The ASX’s blockchain initiative was intended to replace the Clearing House Electronic Subregister System (CHESS). However, ASIC noted that it was halted in November 2022 due to design challenges, and ASX wrote down costs of AUD250 million (over $165 million)

ASIC furthered that the project was already faltering as of February 2022, contrary to ASX’s optimistic announcements. This delay and eventual cancellation resulted in substantial losses for the ASX and its market participants.

ASIC Chair Joe Longo stated that the project’s failure undermined market integrity and reflected poorly on the ASX board and senior executives. He emphasized the importance of accurate information for market participants and the wide-reaching consequences of ASX’s missteps.

Longo added:

“Companies and market participants rely on what the ASX says about its operations to make their own decisions and investments. We expect the ASX to be a place to list and invest with confidence. When the ASX falls short, it has wide ranging consequences across the market.”

ASIC revealed that the latest issues followed ASX’s payment of AUD1,050,000 (over $660 million) in penalties in March due to lapses in compliance with the market integrity rules.

ASX responds

In an Aug. 14 statement, ASX CEO Helen Lofthouse said the company was reviewing ASIC’s allegations and recognized “the significance and serious nature of these proceedings.”

She added:

“We play a critical role at the center of Australia’s financial markets and continue to focus on supporting and delivering for customers. We are committed to taking ASX forward and have made strong progress as an organization over the past two years.”

ASX stated that ASIC is seeking declarations, pecuniary penalties, an adverse publicity order, and costs against it as part of the lawsuit.

Australia is poised to join the global trend of countries, including the US and Hong Kong, allowing their citizens to invest in Bitcoin exchange-traded funds (ETFs).

ASX to approve Bitcoin ETFs

Earlier today, Bloomberg reported that the Australian Securities Exchange (ASX) could approve its inaugural batch of spot Bitcoin ETF before the end of the year after receiving applications from notable players like VanEck, BetaShares, and DigitalX.

ASX is the largest equity exchange in Australia. According to its website, the firm’s domestic market capitalization stood at $2.7 trillion, with over 2000 issuers as of March 2024.

Meanwhile, this upcoming launch would mark Australia’s second wave of such products. In 2022, the country witnessed the introduction of various crypto ETFs from entities like Cosmos Asset Management and Global X 21Shares.

However, these offerings were pulled from the market due to lackluster demand. Initially, trading volumes fell short of expectations, and the onset of a crypto downturn, exacerbated by the collapse of FTX and Terra’s algorithmic stablecoin, further discouraged investor interest.

Despite these previous setbacks, issuers are optimistic this time around. Arian Neiron, the CEO and Managing Director of VanEck Asia Pacific, said:

“Since the US SEC ruling, we’ve experienced a significant uptick in queries and requests from the adviser and broker community regarding our submission to ASX to launch a Bitcoin ETF. The demand for access to Bitcoin via a listed vehicle traded on ASX has been increasing and many of our clients have told us that their clients are already positioned to have an allocation ready to invest.”

Bitcoin ETFs

Since their launch in January, Bitcoin ETFs have surged in popularity, breaking numerous records and amassing an unprecedented $53 billion in assets under management (AUM).

However, despite initial enthusiasm and substantial growth, these ETFs are now experiencing a decline in inflows.

Over the past week, substantial outflows exceeding $300 million were recorded across the ETFs, with significant players like BlackRock and Fidelity witnessing days of zero flows.

Market observers interpret this trend as a sign of waning investor enthusiasm for these investment vehicles. Nonetheless, there remains optimism that the products may experience renewed interest from the industry.

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