A recent announcement stated that Australian cryptocurrency exchange Swyftx and blockchain analytics company TRM Labs have teamed up to fight scams in the country.
Australian cryptocurrency users who enable two-factor authentication on their accounts will receive payment in the amount of AUD 10 (USD 6.6) in Bitcoin as part of the program’s trial run, which is purportedly a world first. It has been released in conjunction with Scam Awareness Week, which is being held in Australia from November 27 to December 1. The announcement stated that the trial will examine the effect of rewarding cryptocurrency customers for safeguarding their accounts and educating themselves about avoiding scams on levels of investment fraud.
A security procedure called two-factor authentication (2FA) demands two different forms of identification in order to access resources. Compared to single-factor processes, which require the user to provide a single form of identity typically a password or passcode the method offers a higher level of security.
Australia has tightened its regulations on cryptocurrencies ever since FTX collapsed. Australian regulators have taken action against cryptocurrency-related businesses like eToro and Block Earner in 2023. Australian blockchain industry participants have voiced opposition to local banks’ prohibitions on cryptocurrency payments.
Among these platforms was the Commonwealth Bank (CBA), which imposed some restrictions in response to scams. Additionally, Binance Australia stopped accepting bank transfers for deposits and withdrawals “due to a decision made” by an outside payment service provider. Then, it seemed that a compromise had been reached between the Blockchain industry and the Australian government.
According to the announcement, Australians reported losing AUD 221 million (USD 146 million) in cryptocurrency in 2022, a 162.4% increase from the year before. Swyftx has prevented scammers from receiving AUD $3 million in customer funds this year.
Swyftx will pay the reward to the first 2,000 customers who enable two-factor authentication on their accounts and finish a course that was co-created with TRM Labs.
Additionally, the partnership encourages users of chainabuse.com, a free scam-reporting website run by TRM Labs, to report suspected fraud. Before interacting with addresses on the website, users can verify them.
By 2024, Australia plans to release draught legislation addressing custody and licencing requirements for companies that provide crypto asset services.