AUSTRAC Warns Crypto- AUSTRAC Blocks Providers Amid Rising Compliance Concerns
AUSTRAC Warns Crypto– Australia’s Anti-Money Laundering (AML) regulator, AUSTRAC, has cracked down on 13 remittance service providers and crypto exchanges. Over 50 others are currently under investigation for possible compliance issues related to money laundering and suspicious transaction reporting.
In a statement on February 17, AUSTRAC CEO Brendan Thomas announced that six providers had been denied registration renewal. This was due to key personnel being convicted, prosecuted, or charged with serious offenses, casting doubts on their integrity and honesty.
Thomas highlighted that over 50 additional providers, including crypto exchanges, had received alerts, which are typically a precursor to regulatory actions. These alerts suggest that operators may be failing to report suspicious transactions, which is a significant concern for regulators. “The blitz follows AUSTRAC’s analysis that identified systemic non-reporting and under-reporting in the remittance and digital currency exchange sectors,” Thomas explained.
Stronger Regulatory Oversight in the Crypto Industry
The move is part of AUSTRAC’s ongoing efforts to clean up the industry and improve compliance in the financial services sector. “Early last year, we initiated an investigation to identify and eliminate non-compliant providers and improve the industry’s reporting on suspicious matters,” Thomas added.
Additionally, two other providers were issued conditions on their registrations after failing to meet compliance deadlines. They now face potential suspension or cancellation of their registrations if the conditions are not met. Three other entities, whose registration was refused, have ceased operations in Australia.
Crypto Exchange Collapses and Regulatory Response
Two prominent collapsed crypto exchanges—FTX Australia and Zipmex Australia—were removed from the country’s Digital Currency Exchange Register after they went insolvent. According to AUSTRAC, there are currently 417 digital currency exchanges and 5,112 remittance registrations operating in Australia.
AUSTRAC is also preparing for further regulatory actions in 2025. Thomas previously stated that the agency would intensify its focus on the cryptocurrency industry, specifically targeting crypto ATM providers who might be violating Anti-Money Laundering laws.
Australia: A Growing Crypto Hub Under Scrutiny
Australia is the third-largest hub for Bitcoin (BTC) and crypto ATMs globally, with over 1,453 ATMs installed as of recent data. This number has seen a massive increase from just 67 in August 2022. Along with this rapid growth, AUSTRAC proposed stricter Anti-Money Laundering and counter-terrorism financing (AML/CTF) rules aimed at tightening oversight of the crypto industry and combating financial crime.
Furthermore, the Australian Securities and Investment Commission (ASIC) has also been active in regulating crypto. In December, the commission released a consultation paper to propose new guidelines for crypto, categorizing many digital assets as financial products and requiring firms dealing in crypto to obtain proper licenses.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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