The contest, called ScamShield, is seeking to award prize money to a developer who creates a product that will help reduce the likelihood of people falling victim to crypto scams. SEC Enforcement Director Cynthia Campbell explained that the goal is to find ways to protect Albertans, especially those who know little about digital currencies.
“Everyone is at risk of digital asset fraud. Fraudsters target anyone with money, whether they are interested in cryptocurrencies or not. Fraud cases are on the rise across the country, and many of them involve cryptocurrencies,” the official said.
Last year, the Canadian Anti-Fraud Centre received complaints about investment schemes with total losses estimated at $309 million. About 60% of the complaints involved cryptocurrencies, which, unlike traditional currencies, are not backed by the government or banks, the SEC noted.
Edmonton police have shared statistics: in 2023, more than 80 city residents reported being victims of crypto fraud. The total losses of city residents amounted to about $7 million. Considering that transactions with digital assets are not always easy to track, law enforcement officials called cryptocurrencies high-risk investments.
In April, the Canadian government promised to implement a new crypto-asset automated tax information flow (CARF) system by 2026. This should reduce the number of tax evaders, the authorities are confident.
Source: Bits
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