Australian financial intelligence agency AUSTRAC has called on digital currency exchanges (DCEs) that are no longer operating to voluntarily withdraw their registrations, warning that failure to do so could result in cancellation.
DCEs, including those operating cryptocurrency ATMs, must be registered with AUSTRAC to legally offer services exchanging cash for cryptocurrency and vice versa. Currently, 427 DCEs are registered, but the agency has expressed concern that a significant number appear inactive. AUSTRAC has begun contacting businesses it believes are no longer trading.
Brendan Thomas, the CEO of AUSTRAC
Brendan Thomas, AUSTRAC’s chief executive, said inactive registrations could be exploited by criminals seeking to use dormant businesses for illicit activities. “Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided,” Thomas said.
He added that maintaining an accurate register is essential for protecting consumer confidence and ensuring that only legitimate businesses operate in the sector.
“Our intelligence shows cryptocurrency can be exploited by criminals for money laundering, scams and money mule activities, and we’re seeing far too many people falling victim to scams involving digital currency,” Thomas stated.
Use It or Lose It
AUSTRAC has the authority to cancel a registration if it determines a business is no longer providing DCE services. Cancellations are published on the agency’s website. Thomas noted that if a business intends to resume operations, it may reapply for registration at any time.
Following its review, AUSTRAC plans to launch a publicly searchable register, allowing consumers to verify whether a digital currency exchange is registered and under regulatory oversight. “
We want to make sure the public isn’t misled about the services a business is legally allowed to provide,” Thomas said. “Members of the public should feel confident that they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight and that we are driving criminals out of this industry.”
Crypto Focus
In February, AUSTRAC announced that it had taken action against 13 remittance and digital currency exchange providers and was investigating more than 50 additional firms.
The regulator, which is tasked with detecting, preventing, and disrupting criminal activity within the financial system, intervened after these platforms failed to adequately report suspicious transactions.
The current enforcement efforts reflect decisions made late last year, when AUSTRAC prioritized cracking down on cryptocurrency ATMs for 2024. The agency had flagged cryptocurrencies as posing increased risks for money laundering, scams, and money mule operations.
