Category: Australia

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Australia Bitcoin Data Scams

Australians Lost $26 Million in Bitcoin to Scams in 2020, Report Shows

A new report from the Australian Competition and Consumer Commission (ACCC) published on June 7, 2021, shows scammers are now commonly receiving money from victims via crypto.

Bank transfer remained the most common payment method used in scams, with just over $97 million lost (a 40 percent increase). Bitcoin was the second-highest payment method, with $26.5 million lost.

Targeting Scams Report (page 14)

The Targeting Scams Report reveals that Australians lost over $850 million to scams in 2020. The figure is based on combined data from Scamwatch, ReportCyber, government agencies, banks, and payment platforms.

Targeting Scams Report (Page 19)

According to the report, it’s not surprising non-traditional payment methods are seen as ideal pickings by scammers. It states: “The perceived anonymity of unregulated cryptocurrencies can impede the ability to recover funds or identify scammers.”

Scammers Take Advantage of Rising Interest in Crypto 

Scams resulting in the highest losses in 2020 included investment scams, romance scams, and business email compromises. 

Many scammers used the COVID-19 pandemic as a ruse to separate people from their hard-earned cash. But Bitcoin and other cryptocurrencies were also a popular way to lure victims via various types of scams. 

As financial analyst Martin North has previously warned crypto enthusiasts, the increasing value of crypto also brings out more ‘bad actors’ seeking naive investors.

Report Findings Explained

Scams relating to Bitcoin feature in multiple case studies included in the ACCC report, including:

  • Investment scams: Featuring sophisticated fake trading sites. ACCC says it’s increasingly difficult for people to identify legitimate investment opportunities – this type of scam resulted in record losses of $328 million in 2020.  
  • Celebrity endorsements: Where images of public figures such as TV host David “Kochie” Koch promote fake websites and trading bots. For instance, Dick Smith’s likeness was used to defraud would-be cryptocurrency investors via ads on The Guardian website. 
  • Romance baiting scams: Striking up a connection via dating apps and then convincing the target to invest money, often in cryptocurrency. ACCC’s report found that people aged 25-34 lost the most money ($7.3 million) to romance baiting in 2020. 
  • Government impersonation scams: Where the scammer contacts a victim over the phone claiming to be from a government agency investigating fraud, and demanding victims deposit money via a Bitcoin ATM.

Bitcoin investment scams were also one of the most common types of scams reported that occurred on social media sites, according to the report, which shows losses to social networking scams increased more than 22 percent in 2020.  

Other scams Crypto News Australia has reported on previously that investors should be wary of include fake invoice scams that targeted Tesla buyers, and dusting attacks – where very small amounts of crypto are added to a person’s wallet in an attempt to de-anonymise it.

If you spot a scam you can report it at www.scamwatch.gov.au.

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Australia Cryptocurrencies

Aussie Mortgage Brokers Claim Buyers Are Using “Coins” To Put Down Deposits

More and more Aussies are using cryptocurrencies to put down deposits or to pay off a large portion of their mortgages altogether. 

Marvin Coleman, from Mortgage Choice in Oakleigh, Victoria, revealed this week that at least 5 percent of his clients have crypto, and it’s becoming a common practice to cash out crypto savings to either fund a deposit or pay off an overall mortgage.

We’re obviously at a very embryonic stage of this. Around 5 percent of my clients have crypto, so the obvious question is, ‘can I use it to demonstrate I can complete my property purchase?’

Marvin Coleman, Mortgage Choice

Crypto and Real Estate Booming in Australia 

Real estate and cryptocurrencies are considered alternative investments for Australians, but it seems the crypto wave is getting more attention than ever – especially in 2021, which has become one of the most tumultuous years for Bitcoin. 

There’s a lot of FOMO [Fear of Missing Out] in both the crypto and the property markets, and lots of people still want to ride the crypto wave. But I think right now there’s slightly more nervousness around crypto and huge FOMO in the property market.

Marvin Coleman, Mortgage Choice

The global property market boom has elevated house prices to astronomical levels across Australian capital cities. The number of Aussies seeking home loans has increased tremendously in the past few months, and some of these homebuyers have holdings in cryptocurrencies as high as A$300,000, Coleman noted.

It’s also worth noting that some real estate agents are accepting cryptocurrencies as payment for properties. The biggest crypto real estate purchase to date was a luxury penthouse in Miami, Florida, which was bought anonymously for US$22.5 million using an undisclosed cryptocurrency.

Over a Million Millennials Will Buy Crypto Next Year

While the property market booms in Australia, so does the number of Aussies investing in crypto. As reported this week, at least 40 percent of Millennials and 31 percent of Gen Zs prefer crypto over real estate, according to a recent survey by cryptocurrency exchange Kraken.

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Australia Bitcoin Crypto News Data

Australia Makes List of Top 20 Bitcoin Gains by Country for 2020

A report tracking dollar gains for 2020 shows that Australia is ranked among the top 20 countries that made gains from Bitcoin last year.

According to the report by Chainalysis, 2020 was a massive year for institutional investors, pushing up the price to new all-time highs. For example, the US made over three times more gains on its investments than China, which placed second in the list.

2020 Bitcoin Gains by Country [Chainalysis]

The data was calculated from US dollars gains and shows US-centred exchanges with huge inflows towards the end of 2020, which could be a factor accounting for the country’s large gains, placing it in top spot.

Australia Places 19th Position

Australia’s favourable outlook on cryptocurrency may be one of the reasons it placed so high on the chart. Australians seem to be excited about Bitcoin, with one poll showing a quarter of employees would accept their remuneration in BTC if possible.

Not only did Binance Australia break records recently, but the government has stated it will not stand in the way of cryptocurrency development in the country. Jane Hume, an Australian Senator and Minister for Superannuation, Financial Services and the Digital Economy, said that people and organisations needed to make their own decisions regarding crypto as long as they follow the law.

Small Countries, Big Gains

Various countries are investing a lot more in Bitcoin relative to traditional economic metrics such as gross domestic product (GDP). Vietnam is one of those countries, with a GDP of $262 billion and categorised as a lower-middle-income country by the World Bank. Yet it has a high level of basic cryptocurrency adoption, ranking 13th in Bitcoin investment gains at $351 million, outperforming countries that rank higher in GDP including Australia, Saudi Arabia and Belgium.

Other countries that displayed a similar phenomenon:

  • The Czech Republic ranks 54th in GDP at $251 billion but is 18th in realised Bitcoin investment gains at $281 million
  • Turkey ranks 25th in GDP at $761 billion but 16th in realised Bitcoin investment gains at $300 million
  • Spain ranks 19th in GDP at $1.4 trillion but 9th in realised Bitcoin gains at $554 million.

We also recently saw El Salvador become the first country to adopt Bitcoin as legal tender. Big plays like this could really factor in the Bitcoin gains list for 2021; could we see other countries challenge the US for top spot?

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Australia Crypto News Cryptocurrencies Cryptos Data Investing Surveys

40% of Australian Millennials Prefer Crypto Over Real Estate

As Australians become increasingly interested in alternative investments, a recent survey by international cryptocurrency exchange Kraken has found that 40 percent of millennials prefer investing in digital assets over real estate.

More Than a Million Millennials Will Buy Crypto in the Coming Year

The findings arrive on the back of a global property market boom elevating house prices to record levels across most Australian capital cities.

Other findings of the report include:

  • 40% of millennials and 31% of Gen Zs believe crypto is a good alternative to property
  • 20% of crypto investors view crypto holdings as being useful in saving for a home or investment property deposit
  • On average, Australian crypto investors have 12.5% of total assets in cryptocurrencies
  • 10% hold more than 25% of total assets in digital currencies
  • Just under 25% of investors are long-term HODLers

As real estate investment becomes increasingly elusive, the report notes that up to 4 million Australians will be buying cryptocurrency in the coming 12 months, a third of whom are millennials. Up to 67 per cent of this group were found to believe that digital assets are a good alternative to an investment property. We also saw recent survey results that 49% of Money Invested into Bitcoin Would Have Gone into Stocks with over 62,000 answers, shows the percentage breakdown of investor capital by markets that was invested into cryptocurrencies..

Kraken Optimistic About APAC

Jonathon Miller, Kraken’s Australia-based managing director, says that cryptocurrency adoption in Australia is growing at a rapid pace with the bulk of demand rather unsurprisingly stemming from millennials and other younger generations. Miller notes:

Australians maintain some conservative attitudes towards investment. Property has been a cultural norm and high on the wish list for most investors, but as affordability continues to be an issue we’re seeing more young people look for other options to grow wealth.

Jonathon Miller
Jonathon Miller, Kraken Australia MD

Miller maintains a positive outlook for the broader Asia-Pacific region and confirms what many have long suspected, that youth is undoubtedly leading the way in crypto adoption:

We’re confident that as more investors look to diversify their portfolios and seek investment opportunities outside of the traditional offerings, we’ll see cryptocurrency come into its own in APAC.

Jonathon Miller

In related news:

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Australia Banking Crypto News

Standard Chartered Bank To Provide Crypto To Aussie Institutional Investors

British-based multinational banking and financial services company Standard Chartered will launch a trading platform for institutional investors, with particular relevance to its Australian branch business and local banking in general.

SC Ventures is the innovation and ventures arm of Standard Chartered, which has 87,000 employees in more than 70 nations and US$789.050 billion in total assets. SC has partnered with Asian company BC Technology Group, owner of Hong Kong digital asset platform OSL, to establish a brokerage and exchange platform for clients in the UK and Europe, and ultimately Australia.

The joint venture is expected to be up and running in the fourth quarter of 2021, subject to regulatory approvals, and aims to deliver access to liquidity in Bitcoin, Ethereum and other digital assets.

Another Brick in the Digital Asset Wall

BC Group’s chief information officer Usman Ahmad, who will head up the new company, says that collaboration between market-leading firms is imperative to the continued development of robust global institutional digital asset infrastructure.

This joint venture will aid in maturing the digital asset ecosystem by combining OSL’s expertise in secure digital asset trading with SC Ventures’ capacity to develop future technology capabilities in banking and finance.

Usman Ahmad, SC/BC joint venture CEO

For the record, OSL subsidiary OSL Digital Securities made history in March when it executed Hong Kong’s first-ever licensed digital-asset trades.

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Australia Bitcoin Crime Crypto News

IT Student Busted Buying Meth Parcel Off the Dark Web With Bitcoin

The Dark Web is a place where you can purchase drugs and have them delivered to your parents’ house, because it’s where you still live. And you can use Bitcoin to pay for them … unless, of course, you get caught.

Bag containing crystal meth, similar to that seized by Rockhampton Police

Joshua Ashton appeared in Rockhampton Magistrates Court this week after being charged with possession of methamphetamine. Ashton was alleged to have ordered the drug online in March 2021 and paid for it with A$300 worth of Bitcoin. He pleaded guilty to one charge of possessing a dangerous drug after Australia Post had intercepted a parcel bound for his parents’ address.

Parcel Intercepted After Police Tipoff by Australia Post

Ashton, a first-year IT student at Central Queensland University, claimed to have purchased the drug for his personal use. On March 25, his express post shipment containing 1.5 grams of methamphetamine was seized by police after the Australia Post tipoff.

Magistrate Jason Schubert recorded a conviction and fined Ashton $600, effectively tripling his investment.

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Australia Betting Crime Crypto News Gambling

Australian Serial Crypto Conman Will Strike Again, Warns Alleged Victim

A former commercial airline pilot defrauded of millions of dollars in Bitcoin has cautioned other cryptocurrency investors about notorious Australian serial scammer Peter Foster.

Peter Foster arrested by Queensland Police on Port Douglas beach, August 2020. Image: IFW GLOBAL/BLOG.IFWGLOBAL.COM

Konstantinos “Dino” Stylianopoulos, a resident of Hong Kong, claims he was defrauded of A$2 million in Bitcoin by Foster in an online gambling scheme, Sport Predictions, run by Foster under an alias.

Police allege bets made by Stylianopoulos and others participating in the scheme were never placed and instead diverted to Foster.

How a $2 Million Bitcoin Investment Ballooned Into An Estimated $8 Million Loss

“Getting anything back from somebody like this is very difficult,” says Stylianopoulos, who claims he lost an estimated A$8 million when the price of Bitcoin later soared. “The bigger objective is to stop (Foster),” he told The Australian newspaper. “In Australia, I don’t believe anybody else has hurt more people.”

“It’s like (the fable of the frog and) the scorpion … ‘Why did you bite me?’ ‘Because I’m a scorpion’.”

Konstantinos Stylianopoulos

Foster remains at large, released on bail in a jurisdictional mix-up between authorities in NSW and Queensland, where the Sport Predictions operation was based. He had been extradited to NSW as the operation’s Bitcoin transfers were made through a Sydney cryptocurrency exchange.

Police In Two States Lack Shared Jurisdiction

According to Stylianopoulos, NSW prosecutors contacted him the day before Foster was bailed by a Sydney court. “There was no chance for me to voice any opinion on it,” he told The Australian. “My biggest question is, why didn’t they coordinate with police in Queensland to just do a handover?”

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Australia Crypto News NFTs

Art World Launches Australia’s First Physical NFT Gallery Exhibition

The popularity of Non-Fungible Tokens (NFTs) has surged in Australia, and traditional and digital artists are embracing the movement. 

Australia’s First NFT Gallery

Hobart’s Museum of Art & Philosophy (MAP) has launched Australia’s first NFT gallery in the Tasmanian capital, where digital and traditional artists from all around the world will display their creations later this month. 

The first exhibition is scheduled for the week of June 16-22, coinciding with Hobart’s annual Dark Mofo festival, and it will showcase the work of artists featured in the magazines New Philosopher and Womankind. Antonia Case, curator of MAP and editor of Womankind, says NFTs can bridge the gap between traditional and digital artists. 

NFTs enable digital artists to compete in the art world alongside fine artists in more traditional media.”

Antonia Case, MAP curator

Artists Making a Living out of NFTs

Case outlined the advantages of tokenising digital content and promoting it on decentralised marketplaces. For instance, NFTs have a certificate on its property — it can’t be destroyed, deleted or replicated. Besides, artists can make better revenues through royalties.

“In the past, digital artists whose work was emailed to publishers via JPEG, GIF, or TIF struggled to show ownership as digital files could be reproduced at will. If a JPEG of a digital work goes online, anyone can download it, which puts digital artists at a disadvantage compared to artists whose work is tangible, such as paintings on canvas, or sculpture.”

Antonia Case

NFTs are giving artists the opportunity to make a living with their work in a more free and decentralised way. An example is Lushxus, a Melbourne street artist famous for his controversial and unique paintings on walls across the city. As reported, Lushxus has earned over $500,000 by auctioning his work on marketplaces like Rarible. 

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Australia Crypto Exchange Crypto News Cryptocurrency Tax Monero Trading

Australian Project Enables Bitcoin And Monero Direct Swaps

COMIT Network, an Australian-based decentralised exchange (DEX), now allows atomic swaps between Monero and Bitcoin.

This means users can directly swap Monero (XMR) for Bitcoin (BTC) without intermediaries. This is currently only available on wallets that support the new functionality. Modern crypto wallets such as Samourai Wallet proved earlier this month that atomic swaps using XMR is working.

“The decentralized Monero exchange technology is here, so now it’s a race for wallets to provide the best user experience. With such high user demand for easy and private peer-to-peer exchanges, it’s only a matter of time before wallets widely implement them.”

Justin Ehrenhofer, an organiser of Monero Space.

The Monero community is working with the Australian COMIT project to build a PoC (Proof of Concept) DEX for the BTC-XMR direct swaps.

Traders Are Using Monero To Avoid Taxes

Monero is best known for its private and fungible characteristics, like hiding the sender, receiver and amount details for all transactions. This allows crypto traders to use XMR to avoid crypto taxes.

This is made possible as XMR uses a special advanced cryptography to facilitate anonymous transactions on decentralised exchanges. This makes it very difficult to prove who actually owns a Monero token.

The Australian Tax Office (ATO) warned crypto traders to report their cryptocurrency holdings in this years tax returns, which could directly affect up to 600,000 aussies.

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Australia Binance Australia Crypto News Trading

Binance Australia Breaks More Records with $615 Million in Daily AUD Trading Volume

Australia Binance AU
Australia Binance AU https://www.dreamstime.com/view-australia-world-map-vignette-radial-blur-effect-elements-image-furnished-nasa-image161905173

Binance Australia has broken another record with a massive $615 million AUD daily trading volume on their cryptocurrency exchange.

The previous record of $130 million AUD in a single day was set back in January this year by Binance Australia. And now they have broken the record a few months down the line.

  • Binance Australia reached $615.83 million in daily AUD trading volume on 19 May 2021.
  • Binance is also currently the largest exchange in the world with $35 billion USD trading volume at the time of writing (second place with $15 billion USD).
  • The exchange has also been the top digital exchange in Australia since January this year.
  • Binance Australia has now reached 3 times the Bitcoin (BTC) trading volume compared to other exchanges in the Australian market, various times.
Source: CryptoCompare
Source: CryptoCompare

Additionally, AUD trading volume is a common indicator defining the performance of digital exchanges. It has been less than 3 months since the last all-time-high (ATH) of $175 million AUD in trading volume was recorded (on 23 Feb). This new peak in volume of $615 million AUD is 3.5 times higher.

During this year, the growth of Binance Australia has been surprising, not just in trading volume but in customer base as well, topping other Aussie exchanges in both Ethereum (ETH) and Bitcoin (BTC) 24-hour trading volume.