The Australian government has upgraded the digital assets elite team of its sales market regulator as part of a "multi-stage approach" to crack down on login passwords and ensure that password companies appropriately disclose risk.

Australian Finance Minister Tony Chalmer and Nurse Finance Minister Stephen Bobby explained in a joint statement issued on February 2nd that the new response is aimed at protecting consumers in contact with digital money.

According to the accounting director, such a multi-stage approach will involve three factors, including improved inspection, improved consumer protection, token projection and innovation to create structures.

One of the key shifts is undoubtedly to expand the size of the Australian Securities and Investment Commission (ASIC) digital assets team and to "improve inspection strategies".

Chalmers and Jones indicate that ASIC is committed to ensuring that consumer losses caused by data encryption products and service providers are appropriately disclosed.

Cointelegraph contacted ASIC to find out how many additional jobs there would be, but didn't get an immediate reply.

In addition, the government will provide Australian market competition regulator the Australian Federation of Competition and consumers (ACCC) with new dedicated tools to protect consumers from password-related fraud. It stressed that fraud damages related to login passwords totaled $221 million in 2022.

The tool will be in the form of a real-time dynamic sharing tool that ACCC will use to identify and avoid login password fraud.

When the approval and trusteeship framework for regulating digital assets are agreed, consumer protection will be enhanced to "ensure that consumers are protected from manageable corporate bankruptcy or misuse of their assets by service providers."

However, this framework will not be implemented until 2023, and it may take a very long time to promote it.

"successive government departments have entered into the existing data encryption policy, but have never taken the time to fully prepare for protecting consumers and guiding this new asset class strict regulatory framework," the accounting director said, adding:

We are taking action quickly and methodically to ensure that consumers are well protected and that real independent innovation can develop rapidly.

The Australian National Ministry of Finance issued a dynamic password projection consultation document on February 2 in an attempt to clarify what elements of the digital currency ecosystem will be regulated and how well they will be regulated.

This multi-stage approach has progressed steadily after the catastrophic collapse of FTX last November, which severely affected more than 30, 000 Australians and 132 Australian companies.