As part of its “multi-stage strategy” to crack down on cryptocurrencies and ensure cryptocurrency firms provide accurate risk information, the Australian government is increasing the size of the digital assets team working under its market regulator.

The new restrictions are intended to safeguard consumers handling bitcoin, as outlined in a joint statement issued on February 2 by Australia’s Deputy Treasurer Stephen Jones and Australian Treasurer Jim Chalmers.

The treasurers said that the multi-stage strategy would involve three components, these components being strengthening enforcement, strengthening consumer protection, and establishing a framework for their token mapping reform.

The Australian Securities and Investments Commission (ASIC) has announced that it will “increase compliance efforts” and increase the number of its digital asset division. This is one of the most significant adjustments.

According to Chalmers and Jones, the ASIC would have a primary emphasis on ensuring that customers are adequately informed about the potential dangers posed to them by providers of cryptographic services and products.

Meanwhile, the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, will soon receive new tools from the government to help it protect consumers against fraud using cryptocurrency. The total amount of money lost to cryptocurrency payment scams was recorded at $221 million in 2022.

The ACCC will use the new technology, which will take the form of a real-time data exchange platform, to detect and prevent fraud using cryptocurrencies.

When a framework to regulate the licensing and custody of digital assets is finalized, consumer protection will also be strengthened. This will “ensure that consumers are protected from avoidable business failure or misuse of their assets by service providers,” according to the official description of the framework’s goal.

However, implementation of this framework will not begin until mid-2023, and it will likely take a significant amount of time until it is codified into law.