Australian regulator ups scrutiny of trading forums after WallStreetBets

Australia’s securities regulator has contacted internet share trading forums to question them about policing of “pump and dump” scams on their platforms, a sign of growing scrutiny of an investment
subculture that soared during pandemic lockdowns.

The Australian Securities and Investments Commission (ASIC) told Reuters it has boosted surveillance of local retail trading internet chatrooms that have sprung up since the “WallStreetBets” Reddit chatroom was linked to wild U.S. stock fluctuations this year.

That has led to discussions between the regulator several operators of the profanity, irony and meme-laden chat forums — who often operate anonymously — about their liability if they allow share inflation schemes to flourish.

“If we see concerning conduct that looks as though it was a clear ‘pump and dump’…