Australian Regulators Crack Down on Illegal Crypto Miners

Liputan6.com, Jakarta The Australian government has taken firm action against illegal crypto mining companies in Australia. In a significant legal move, the Australian Federal Court has allowed the transfer of around USD 41 million or equivalent to IDR 660.8 billion in digital assets to McGrathNicol, a restructuring company.

Reporting from CoinmarketcapWednesday (7/5/2024), this decision was taken after the Australian Securities and Investments Commission (ASIC) accused the blockchain mining company NGS group of operating without appropriate permits.

The court action underscores a broader crackdown on unregulated financial activity in Australia's cryptocurrency sector.

The lawsuit targets NGS Crypto, NGS Digital and NGS Group, and their directors, who are alleged to have violated Australian financial services laws by offering investment opportunities without the required permits.

Investment Security Questioned

This situation has raised concerns regarding investment security and the legal framework governing emerging digital financial practices.

Notably, ASIC's move reflects its commitment to ensuring that financial services in the country, especially those in the fast-growing crypto space, comply with existing regulations.

The directive to hand over digital assets to restructuring specialists is a precautionary measure to safeguard investments made by more than 450 Australian investors.