Australian Securities and Investments Commission (ASIC) published a warning against rising crypto scams in the country today. ASIC highlighted that the trustees of self-managed super funds (SMSFs) are being targeted by fraudsters.
The commission requested residents to seek advice from licensed financial advisers before such investments. In the recent press release, ASIC called digital currencies speculative assets and outlined risks associated with the growing crypto market.
In addition, ASIC asked Australians to stay away from ‘attractive investment opportunity’ ads on social media. In November 2021, ASIC obtained Federal Court orders against the unlicensed investment scheme A One Multi Services. The details shared by the commission showed a transfer of almost $2.4 million from the accounts of A One Multi Services for the purchase of crypto assets.
“Australians who decide to self-manage their super should consider the risks before using their SMSF to invest in crypto-assets. As the trustee of your SMSF, you ultimately bear responsibility for the fund’s decisions and for complying with the law even if you rely on other people’s advice, licensed or otherwise. ASIC recently issued warnings about an increase in scams involving crypto-assets, and our Moneysmart website contains information on how to spot an investment scam, SMSFs and cryptocurrencies. The ATO website also contains information on superannuation scams,” ASIC noted.
Rising Crypto Scams in Australia
Last year, Australia saw a sharp surge in crypto scams. Between March 2021 and May 2021, ASIC reported a 20% YoY jump in cryptocurrency-related investment scams. Furthermore, fraudsters stole the personal information of the victims.
“There are rules governing investments the SMSF can make and taxation consequences for investments, including cryptocurrencies. Any investment must be permitted under the fund’s trust deed and be in accordance with the fund’s investment strategy,” ASIC added.
Last year, ASIC revealed its tactics to bust Pump-and-Dump groups.
