- AUSTRAC has taken action against 13 crypto firms, with more than 50 others under scrutiny.
- Currently, 417 digital currency exchanges and 5,112 remittance providers are registered.
AUSTRAC, Australia’s anti-money laundering regulator, moved against 13 cryptocurrency companies under its overall operation of cracking down on non-adherence to money laundering laws. Over 50 more companies continue to be watched.
The probe, which commenced more than a year ago, aims to confirm that cryptocurrency exchanges and digital currency providers comply with Australian AML standards.
In addition, AUSTRAC has released new warnings to companies that might not be complying with reporting requirements. Particularly in some suspicious transactions. The main concern of the regulator is whether operators are meeting their obligation to report suspicious transactions to AUSTRAC on time.
AUSTRAC CEO Brendan Thomas stressed that these warnings are prior indicators of possible regulatory steps. They are intended to flag AUSTRAC’s concerns regarding potential under-reporting and non-reporting on the part of operators.
Thomas stated:
“Late last year AUSTRAC cancelled, suspended and refused renewals of registration for 9 providers that had failed to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act.”
Notable Regulatory Actions and Investigations
AUSTRAC has targeted several cryptocurrency businesses. Key staff members of companies such as Auasia Trading Pty Ltd, Amco Travelling and Exchange Pty, and Blue Star Exchange Pty Ltd have been subjected to serious accusations or court actions, tainting their credibility and operating status.
Companies like DIGI-SEND E-Money Pty Ltd and Rootie Technology Pty Ltd didn’t meet the required registration standards. Hence, they are no longer active in the industry. Contrarily, Currencyfair Australia Pty Ltd and Currencyfair Limited missed the registration deadlines. And, now allowed to operate with certain conditions.
Further, AUSTRAC took action by removing two companies, Zipmex Australia Pty Ltd and FTX Express Pty Ltd, from the Digital Currency Exchange Register due to their insolvencies. This move highlights the regulator’s active role in maintaining compliance and ensuring operational integrity within the industry.
Regulatory Focus on the Digital Currency Exchange Sector
AUSTRAC is worried about the money laundering risks in the digital currency exchange (DCE) sector. To tackle this, the agency set up the Crypto Taskforce last year. It continues to play a key role in addressing these AML challenges in the industry.
According to recent data from AUSTRAC, there are currently 417 digital currency exchanges and 5,112 remittance providers registered in Australia. Since the start of 2024, AUSTRAC has sent 106 reminders to different businesses, urging them to stay on top of their compliance responsibilities.
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