Australia’s financial watchdog, AUSTRAC, has taken action against 13 remittance providers and crypto exchanges, addressing money laundering issues in the sector. Around 50 other providers are being investigated, sending alerts as a precursor to the regulatory action.
Australia’s Anti-Money Laundering regulator, AUSTRAC (Australian Transaction Transaction Reports and Analysis Centre) has revealed that the regulator has taken action against several crypto providers and exchanges for not following the country’s Anti-Money Laundering rules. AUSTRAC CEO, Brendan Thomas disclosed that the regulator had negated the renewal of the registration of six providers, for not following the AML standards.
More than 50 remittance providers and services are under investigation, alerts were sent to these providers claiming that they are not reporting suspicious activities and transactions in their platform. In addition, two other entities are at risk of suspension or cancellation of their registration, failing to meet requirements before the deadline. Three other platforms that were refused registration are no longer operating in Australia.
On the other hand, FTX Australia’s subsidiaries FTX Express and Zipmex Australia were removed from the country’s Digital Currency Exchange Register following insolvency proceedings.
According to reports from AUSTRAC, there are 417 digital currency exchanges, and 5112 remittance providers are registered with AUSTRAC. The country remains the third largest hub for Bitcoin and crypto ATMs. Since the beginning of 2024, has notified around 106 entities of their obligations, whenever they fail to abide by the rules, they expose themselves to further legal action.
AUSTRAC finds that cryptocurrency and crypto ATMs are platforms prone to money laundering since they offer instant and irreversible transfer, and the agency is thus shifting its focus to the crypto industry in 2025.
AUSTRAC To Mitigate Money Laundering Risks In Crypto
AUSTRAC has been on a journey for a long time to find exchanges and service providers that ignored suspicious transactions. The regulator has spotted two companies that are under notice now. AUTSTRAC will cancel its registration if it fails to comply with the regulatory conditions for operation licenses.
Companies facing legal action include Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, and B-Paywize Pty Ltd. Other companies like Jinte Net Blockchain Pty Ltd and DIGI SEND E-Money Pty Ltd are marked as operating businesses that are not to be registered. Currencyfair Australia and Currencyfair Limited are now registered with conditions, as they failed to meet the complete registration requirements.
AUSTRAC reports exchanges and providers that fail to expose suspicious transactions within their platform, aiming to solve financial crimes in such platforms. The agency has pointed out that if crypto exchanges and service providers fail to report fraudulent and suspicious transactions, it affects the agency’s fight against financial crime.
The regulatory landscape of crypto and other digital assets is redefining in Australia, prioritizing citizen’s security by ensuring compliance and nullifying risks associated with anti-money laundering and terrorism financing. AUSTRAC’s tangible policies showcase the country’s strong defense in highlighting fraudulent activities. Over the years, with the strong measures and policies of AUSTRAC, we may see a fraudulent free crypto environment in Australia.