TRM Labs and Swyftx Join Forces to Fight Crypto Scams

• Partnership between TRM Labs and Swyftx to Combat Cryptocurrency Scams
• Novel Programme to Incentivise Security
• Understanding Two-Factor Authentication (2FA)
• Steps towards Tighter Crypto Regulation in Australia
• Aussie Crypto Losses and the Fight Against Fraud
• Australia's Future Crypto Regulation

Partnership between TRM Labs and Swyftx to Combat Cryptocurrency Scams

A recent partnership between blockchain analytics company, TRM Labs, and Australian cryptocurrency exchange, Swyftx aims to address scams in Australia's growing cryptocurrency market.

Novel Programme to Incentivise Security

In a unique initiative, Australian cryptocurrency users who activate two-factor authentication on their accounts could earn AUD 10 (USD 6.6) in Bitcoin$42,260 -0.64%. Timed to launch alongside the Australian government's Scam Awareness Week (Nov. 27th to Dec. 1st), the trial aims to examine if rewards can effectively lower investment fraud levels by encouraging users to safeguard their accounts and learn how to avoid scams.

Understanding Two-Factor Authentication (2FA)

Two-factor authentication (2FA) is a security measure that requires two forms of identification for access. This method offers greater security than single-factor processes, which typically involve a single form of identification like a password.

Steps towards Tighter Crypto Regulation in Australia

Following the collapse of FTX$3.28 -5.38%, Australia has embarked on a journey to strengthen its crypto regulation policy. In 2023, actions have been taken against crypto-related companies like Block Earner and eToro by Australian regulators. Additionally, various stakeholders in the blockchain industry in Australia have opposed restrictions on crypto payments imposed by local banks. One such bank, the Commonwealth Bank (CBA), applied partial restrictions citing scams. Binance Australia even halted deposits and withdrawals via bank transfers based on a decision made by a third-party payment service provider. Nonetheless, a compromise seems to have been reached between the government and the Blockchain industry.

Aussie Crypto Losses and the Fight Against Fraud

In 2022, losses due to cryptocurrency scams reported by Australians totaled AUD 221 million (USD 146 million), a staggering 162.4% increase from the previous year. This year, Swyftx has reportedly prevented AUD 3 million in customer funds from ending up in the hands of scammers.

In a move to incentivize security, Swyftx will offer rewards to the first 2,000 customers who activate two-factor authentication on their accounts and complete a course co-developed with TRM Labs. Furthermore, through the partnership, customers are encouraged to report suspected fraud on chainabuse.com, a free scam-reporting site run by TRM Labs. Users can also verify addresses on the site before interacting.

Australia's Future Crypto Regulation

Australia anticipates the release of draft legislation covering licensing and custody rules for crypto asset providers by 2024.

Edited by Jonathan Stoker