AUSTRAC Intensifies Crackdown on Non-Compliant Cryptocurrency Providers in Australia
In a major regulatory push, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has escalated enforcement actions against cryptocurrency exchanges and remittance service providers. The agency has warned that failure to comply with anti-money laundering (AML) laws will result in severe penalties, including registration cancellations and legal repercussions.
AUSTRAC’s Enforcement Actions
As of February 2025, AUSTRAC has taken regulatory action against 13 digital currency providers and has placed over 50 more under scrutiny. CEO Brendan Thomas stated that the agency has canceled, suspended, or refused to renew registrations for nine companies due to non-compliance with Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act. Two additional providers have had conditions placed on their registrations, with failure to meet these conditions potentially leading to further suspensions or cancellations.
“Businesses working in this space who are not meeting their obligations can expect to hear from us,” Thomas warned, reinforcing AUSTRAC’s commitment to tightening regulations within the cryptocurrency sector. (AUSTRAC Official Statement)
Crypto ATM Monitoring and Compliance Task Force
In addition to targeting digital currency exchanges, AUSTRAC has also turned its focus toward cryptocurrency ATMs. Australia has seen a sharp increase in crypto ATMs, with over 1,200 machines currently operating nationwide. These ATMs facilitate cash-to-crypto and crypto-to-cash transactions, making them potential hotbeds for illicit activities such as money laundering.
To mitigate risks, AUSTRAC has established a special crypto task force to monitor ATM operators and ensure compliance with AML/CTF regulations. Non-compliant ATM providers may face immediate suspension or criminal penalties. (News.com.au)
Impact on Cryptocurrency Exchanges
Some major digital currency exchanges have already been affected by AUSTRAC’s crackdown. Businesses such as Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, and B-Paywize Pty Ltd have either been charged with financial crimes or are facing legal proceedings. Additionally, Jinte Net Blockchain Pty Ltd and DIGI-SEND E-Money Pty Ltd were found to be operating businesses that no longer require registration due to structural changes. (AUSTRAC Statement)
AUSTRAC has also removed FTX Express and Zipmex Australia from the Digital Currency Exchange Register after both companies filed for bankruptcy. (Financial Review)
You have not selected any currency to displayLegislative Reforms and Future Regulations
The Australian government has been ramping up its regulatory framework for the cryptocurrency sector. In December 2024, Parliament passed the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2024, introducing stricter compliance requirements for crypto exchanges. (AUSTRAC Legislative Update)
Despite these advancements, there is growing concern that Australia is falling behind global leaders such as the US, UK, and Singapore in providing clear regulations for the crypto industry. Analysts warn that overregulation could push innovation offshore, deterring investment and development within Australia’s growing fintech sector. (The Australian)
Conclusion
AUSTRAC’s crackdown on cryptocurrency providers underscores the importance of compliance within Australia’s digital financial ecosystem. As the crypto landscape continues to evolve, companies must prioritize adherence to AML/CTF regulations to avoid regulatory action. Moving forward, striking a balance between enforcement and fostering innovation will be crucial for Australia’s position as a global financial and fintech hub.
