According to a Bloomberg report of Friday, Austria’s Financial Market Authority has unveiled that more than 60% of all reported financial fraud in the country involve crypto trading products. The financial regulator says these crypto scammers are using social media platforms like Telegram and TikTok to advertise their fraudulent offerings to would-be victims. The surge in crypto scam whistle-blower reports could be linked to a general increase in crypto-related fraud amid the onset of the global pandemic last year.
“We see a great need for stricter regulation.”
Commenting on the need for more strict crypto regulations to curb the menace of these fraudulent investment activities, Klaus Grubelnik, a spokesperson for the FMA, remarked: “We see a great need for stricter regulation. Fake offerings for stocks and gold have been around forever, and these scams are now shifting to digital assets because of the hype.” The surge in crypto scam whistle-blower reports in 2020 could be linked to a general increase in cryptocurrency-related fraud amid the onset of the coronavirus pandemic last year.
Austrian finance minister called for pan-European Union crypto regulations to combat money laundering.
Back in 2018, Austria’s finance minister Hartwig Löger called for pan-European Union crypto regulations to combat money laundering. At the time, Löger’s comments came amid the recently discovered Optioment Bitcoin pyramid scheme that siphoned over 12,000 Bitcoin from the victims of the scam. Despite the apparent increase in reported crypto scam investments in Austria, traditional exchanges in the country are still at the heart of boosting the adoption of digital asset trading. Earlier, the US SEC commissioner also called for more strict crypto regulations amid the ongoing massive bitcoin bull run.