TRM Labs, a blockchain analytics company, has collaborated with Swyftx, an Australian cryptocurrency exchange, to counteract scams within the country, according to a recent announcement.
This groundbreaking initiative, the first of its kind globally, incentivizes Australian crypto users to activate two-factor authentication (2FA) on their cryptocurrency accounts by rewarding them with AUD $10 worth of Bitcoin.
Launched in conjunction with the Australian government’s Scam Awareness Week (Nov. 27th to Dec. 1st), the program has a goal to assess the impact of incentivizing users. This incentive is to safeguard their accounts and enhance their awareness of scam avoidance strategies.
TRM Labs: Enhancing Cryptocurrency Security and Regulatory Frameworks in Australia
Two-factor authentication (2FA) is a security protocol that requires two forms of identification to access resources. This approach enhances security compared to single-factor processes. Single-factor processes rely on a sole form of identification, usually a password or passcode.
Australia has recently intensified its regulatory stance on cryptocurrencies, particularly following the collapse of FTX. In 2023, regulatory actions were taken against crypto-related entities like Block Earner and eToro.
Notably, the Commonwealth Bank (CBA) implemented partial restrictions, citing scams. In a similar vein, Binance Australia temporarily halted certain services. This decision was prompted by a third-party payment service provider.
Australia’s Crypto Landscape: Collaboration, Challenges, and Victories
The blockchain industry in Australia has, however, seemingly found common ground with the government after facing restrictions on crypto payments by local banks.
Furthermore, according to the announcement, Australians reported a substantial increase in cryptocurrency losses in 2022. The reported loss amounted to AUD 221 million (USD 146 million), representing a significant uptick of 162.4% compared to the previous year.
Moreover, Swyftx, in its efforts against scams, prevented AUD 3 million in customer funds from falling into the hands of scammers this year.
However, as part of the initiative, the first 2,000 customers who activate 2FA on their accounts and complete a co-developed course with TRM Labs will receive the reward from Swyftx.
Additionally, as part of the partnership, users are encouraged to report suspected fraud through chainabuse.com. This is a free scam-reporting platform operated by TRM Labs. It empowers customers to verify addresses before engaging with them on the website.