More Than 1,200 Crypto-related Complaints Recorded By Australia’s Consumer Protection Agency

More Than 1,200 Crypto-related Complaints Recorded By Australia’s Consumer Protection Agency

April 6, 2018 Off By Sydney Ifergan

Consumer Protection Agency in Australia records more than 1,200 crypto related protests and complaints.

The Australian Competition & Consumer Commission or ACCC is charged with controlling fair trading and implements consumer regulations. ACCC Scamwatch Team allegedly received thousands of complaints associated with Bitcoin in previous year, with economic losses at more than 1.2 million. Lots of Australians have lost their finances on Bitcoin exchange and some have fallen prey to Bitcoin frauds.

Like for instance Akram Bekzada, invested his money to buy Bitcoin but was not capable of getting money from the Igot. He laid protests with the authority and the ASIC or Australian Securities and Investment Commission but he was told that they don’t have the right or ability to act. “

“One of the main selling points of Igot was that they’re an Australian entity, according to Akram. “This is how they marketed; this is how they obtain the trust of many people. Lots of clients are astonished as to why nothing has been done. Everybody expected so much more from authorities in Australia.”

In the United States, one can make complaints on crytocurrency through sending their protests to the CFPB or Consumer Financial Protection Bureau. This is a government group charged with keeping consumer safety with regards to the financial aspect. If someone has lost access to his or her funds on an exchange in the US or think that a specific Bitcoin company has a problem with the service that resulted in a loss of money or possibly trading profit, he or she can depend on CFSB. This agency will look into the issue in behalf of the complainant.

Like with any government agencies, this could be a time consuming process. This might not lead to the desired result. If one has lost a considerable amount of money deposited with a cryptocurrency company based in the US, he or she will be advised to directly take legal action. To some extent, lack of confidence in regulatory around the official status of cryptocurrency globally is also affecting the outcomes of the complaints.

In the United Kingdom, FSCS or Financial Services Compensation Scheme keeps consumer safe and sound opposed to losses by £50,000, in case the authorize financial organization is going in liquidation. On the other hand, as crypto monetary agencies cannot approve the investor who loses his digital currency holding isn’t entitled to be paid back. In addition, the FOS or the Financial Ombudsman Service, UK’s consumer protection group covering financial items, cannot be of service because of the deficiency in the guideline in the crypto space.

For that reason, until there is a clear law or guideline put in place which govern the rights of the consumer in connection with cryptocurrencies, small things can be performed through the usual authorities for investors who have lost funds because of cryptocurrency-related investment or operational problems at cryptocurrency financial groups.

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