Austrian lawmakers have reportedly urged for crypto regulations with enhanced scrutiny, during a time where investment scams targeting the crypto sector are on the rise. 

Specifically reportedly by Bloomberg, Austria’s Financial Market Authority revealed insights showing over 60% of all reported financial fraud across the nation are connected with crypto trading products.

The FMA reportedly claimed these crypto scammers are utilizing  social media channels, such as Telegram and TikTok, for running promotions supporting their fraudulent offerings to potential victims.

Offering remarks on the need for crypto regulations with enhanced scrutiny, to reduce the threat from fraudulent investment activities, Klaus Grubelnik, a representative from the FMA reportedly claimed: 

“We see a great need for stricter regulation. Fake offerings for stocks and gold have been around forever and these scams are now shifting to digital assets because of the hype.”

The increase in crypto scam whistle-blower reports last year could reportedly be connected to an overall surge in crypto-associated fraud during the beginning phase of the global pandemic in 2020.

Two years ago in 2018, Austria’s finance minister Hartwig Löger reportedly urged for the formation of pan-European Union crypto regulations, to fight against money laundering.

During the time Löger’s comments reportedly surfaced not long after the Optioment Bitcoin pyramid scheme had been uncovered, which caused a financial damage of over 12,000 Bitcoin (BTC)  from the victims of the scam.