TRM Labs Partners With Aussie Crypto Exchange Swyftx to Combat Scams

Blockchain analytics firm TRM Labs has partnered with Australian cryptocurrency exchange Swyftx in an effort to combat scams in the nation, an announcement on Monday said.

The program will trial an apparent global first in which Aussie crypto users who activate two-factor authentication on their cryptocurrency accounts will be paid AUD 10 (USD 6.6) worth of Bitcoin. It has been launched to coincide with the Australian government’s Scam Awareness Week (Nov. 27th to Dec. 1st). The trial will test the impact on investment fraud levels of rewarding crypto customers for protecting their accounts and educating themselves about how to avoid scams, the announcement said.

Two-factor authentication (2FA) is a security process requiring two forms of identification to access resources. The method provides a higher level of security than single-factor processes, in which the user provides a single form of identification, usually a password or passcode.

Ever since the collapse of FTX, Australia has taken steps to tighten its crypto regulation policy. The year 2023 has seen Australian regulators take action against crypto-related companies such as Block Earner and eToro. Blockchain industry stakeholders in Australia have taken a stand against restrictions on crypto payments by local banks. The Commonwealth Bank (CBA) was one such platform that applied partial restrictions citing scams. Binance Australia also halted deposits and withdrawals by bank transfer “due to a decision made” by a third-party payment service provider. Australia’s government and the Blockchain industry then appeared to have reached a compromise.

In 2022, Aussies reported a loss of AUD 221 million (USD 146 million) in cryptocurrency, an increase of 162.4% from the previous year, according to the announcement. This year, Swyftx has stopped AUD 3 million in customer funds from going to scammers.

The initial 2,000 customers who enable two-factor authentication on their accounts and complete a course co-created with TRM Labs will be paid the reward by Swyftx. The partnership also encourages customers to report suspected fraud on chainabuse.com, a free scam-reporting website operated by TRM Labs. Customers can check addresses before engaging with them on the website.

Australia expects to release draft legislation that covers licensing and custody rules for crypto asset providers by 2024.