Crypto Complaint in Australia
If you are a crypto investor in Australia, you may have encountered some issues with your transactions, such as delays, errors, or losses. You may be wondering what your rights are and how to file a complaint if you are unhappy with the service you received from a crypto exchange, broker, or wallet provider.
Below, we will explain the steps you need to take to make a crypto complaint in Australia and what to expect from the process.
Step 1: Contact the service provider
The first thing you should do is contact the service provider directly and explain your problem. You should keep a record of your communication, such as emails, chat logs, or phone calls. You should also provide any evidence that supports your claim, such as screenshots, transaction IDs, or receipts.
The service provider should respond to your complaint within a reasonable time frame and try to resolve it in a satisfactory manner. If they do not respond or you are not happy with their response, you can escalate your complaint to the next level.
Step 2: Contact the external dispute resolution scheme
If you are unable to resolve your complaint with the service provider, you can contact the external dispute resolution (EDR) scheme that they belong to. EDR schemes are independent organisations that help consumers and businesses resolve disputes without going to court.
There are two main EDR schemes that cover crypto services in Australia: the Australian Financial Complaints Authority (AFCA) and the Complaints Resolution Panel (CRP).
The AFCA is an independent body that handles complaints about financial services, such as banking, insurance, superannuation, and investments. The AFCA can deal with complaints about crypto services that are regulated by the Australian Securities and Investments Commission (ASIC), such as exchanges or brokers that hold an Australian Financial Services Licence (AFSL) or are registered as Digital Currency Exchange Providers (DCEPs). The AFCA can also deal with complaints about crypto services that are members of the AFCA scheme voluntarily.
The CRP is an independent body that handles complaints about digital currency services, such as exchanges, brokers, and wallets. The CRP can deal with complaints about crypto services that are not regulated by ASIC or are not members of the AFCA scheme. The CRP is funded by the Digital Currency Industry Association (DCIA), which is a self-regulatory organisation for the crypto industry in Australia.
You can find out which EDR scheme your service provider belongs to by checking their website, terms and conditions, or customer agreement. You can also contact the EDR schemes directly and ask them if they can handle your complaint.
To make a complaint to an EDR scheme, you need to fill out an online form or call them. You will need to provide details of your complaint, such as the service provider’s name, the date and amount of the transaction, and the outcome you are seeking. You will also need to attach any relevant documents or evidence that support your claim.
The EDR scheme will review your complaint and try to facilitate a resolution between you and the service provider. They may ask for more information or evidence from both parties or arrange a mediation session. If a resolution cannot be reached, the EDR scheme will make a decision based on the facts and the law. The decision is binding on the service provider but not on you. You can accept or reject the decision within a specified time frame.
Step 3: Contact the regulator or seek legal advice
If you are still not satisfied with the outcome of your complaint after going through the EDR scheme, you have two options: contact the regulator or seek legal advice.
The regulator is the government agency that oversees and enforces the rules and regulations for crypto services in Australia. The main regulator for crypto services is ASIC. ASIC can investigate complaints about breaches of consumer protection laws, such as misleading or deceptive conduct, unfair contract terms, or fraud. ASIC can also take action against service providers that operate without a licence or registration.
To make a complaint to ASIC, you need to fill out an online form or call them. You will need to provide details of your complaint, such as the service provider’s name, the date and amount of the transaction, and the outcome you are seeking. You will also need to attach any relevant documents or evidence that support your claim.
ASIC will assess your complaint and decide whether to take action or not. ASIC may contact you for more information or refer your complaint to another agency. ASIC may also issue warnings, fines, injunctions, or bans against service providers that breach the law. However, ASIC cannot order compensation or refunds for consumers.
Alternatively, you can seek legal advice from a lawyer who specialises in crypto law. A lawyer can advise you on your legal rights and options and represent you in court if necessary. A lawyer can also help you negotiate a settlement with the service provider or file a lawsuit against them.
However, seeking legal advice can be costly and time-consuming. You may also face difficulties in enforcing a court judgment against a service provider that is based overseas or operates anonymously. Therefore, you should weigh the pros and cons of taking legal action before proceeding.
Crypto scams can cause significant losses for victims, who may not be able to recover their funds or access their accounts.
Conclusion
Making a crypto complaint in Australia can be a complex and lengthy process. However, by following these steps, you can increase your chances of getting a fair and favourable outcome. Remember to keep calm and professional throughout the process and seek help from experts if needed.
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