Social media posts in several countries have shared the false claim that Australians need a ‘social credit score’ of 100 to buy cryptocurrencies such as Bitcoin. The post appears to misrepresent how financial institutions verify the identity of their customers, with AFP experts saying the points system doesn’t compare to ‘social credit’.Australia’s financial crime watchdog told AFP that a “social credit score” does not exist in Australian law.
Part of a post published on Facebook on December 20, 2022 reads, “Breaking news: Australian citizens can only access Bitcoin if they have sufficient social credit – report.” .
“According to the new law, Australian citizens must have at least a 100 score of social credit before conducting any digital transaction, including cryptocurrency transactions and access to the web. The decision to implement caused a stir, especially on social media,” the post reads.
“Social credit” According to the Hong Kong-based South China Morning Post, it appears to be referring to a system used in China that ranks the trustworthiness of citizens and businesses.
Those with good social credit scores can receive perks, while those with poor scores can be barred from higher education and public transportation.
The Facebook post also noted that Australian regulators recently launched a new law requiring citizens to obtain a “100-point ID” before using social credit, and an article on the coin.fii website It also mentions a link to
Screenshot of misleading Facebook post taken on December 27, 2022
A similar claim was shared by an Australia-based Facebook user.
It was also shared on Twitter here, here and here by users with thousands of followers.
The post links to articles of similar wording and format from December 2022 on coin.fyi, News 4 Social, and Crypto News Flash, which have since been removed.
The coin.fyi article headline seems to have been updated to read:
But that claim is false.
“Know Your Customer” Requirements
Institutions that provide cryptocurrency services in Australia are considered reporting agencies and must be registered with the Australian Trade Reporting and Analysis Center (AUSTRAC), which monitors abuse within the financial system.
These institutions are obligated to comply with laws designed to curb money laundering, terrorist financing, and other serious crimes.
This includes systems to verify the identity of customers before serving them.
“ The Anti-Money Laundering and Combating the Financing of Terrorism Act of 2006 (AML/CTF Act) requires digital currency exchange (DCE) providers to implement systems, processes and controls within their businesses to mitigate criminal abuse. ,” an AUSTRAC spokesperson told AFP by email in January. 16.
other countries such as of Englandthere is also a requirement to “know your customer”.
An AUSTRAC spokesperson added that the AML/CTF law “does not require a ‘social trust’ score check, which is not present in Australian law.”
“Not an accurate comparison”
The article linked by the misleading social media post also refers to Australia’s new law banning citizens from using social media unless they have a “100 point ID.”
“100 points of ID” apparently refers to a weighted scoring system used by Australian financial institutions and authorities to determine whether you have submitted sufficient documentation to verify your identity.
The system is part of Australian law and legally requires “cash dealers” such as banks, casinos and gambling establishments to carry verified records with the person holding the account. I’m here.of tax and other laws
For example, the Australian Federal Police checklist assigns 70 points to passports, 40 points to driver’s licenses, and 25 points to credit card and bank statements. The general public must make enough paperwork to hold a total of 100 points or more for him to meet the requirements.
Failure to meet the 100-point identity verification requirement may result in customers being barred from critical financial services, but AUSTRAC has guidance on alternative verification procedures.
Peter Rogers, senior lecturer at Macquarie University’s School of Social Sciences, told AFP: “To my knowledge, this type of proof of ‘identity points’ schemes is comparable to ‘social credit points’ schemes. It is not a thing. It is invented or operated in China.”
Rogers, who wrote about China’s social credit system, said in a January 10 email: A useful or accurate comparison. “
AFP previously uncovered similar allegations about social credit requirements for social media use, misinterpreting a proposal to require Australians to verify their identities.