Australia’s financial watchdog, AUSTRAC, is cracking down on cryptocurrency providers in an effort to combat money laundering and terrorism financing. The agency has targeted over 50 crypto exchanges and remittance providers, taking action against 13 of them for failing to comply with anti-money laundering laws.
In a press release statement, AUSTRAC CEO Brendan Thomas revealed that nine providers had their registrations canceled, suspended, or refused to renew late last year. Two providers had conditions placed on their registrations, with the threat of suspension or cancellation if they fail to meet these conditions. The agency has also imposed restrictions on two providers’ registrations, warning that further violations may result in termination.
The crackdown comes after a year-long probe into companies that may have failed to disclose or underreported suspicious transactions. Several executives from companies like Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, and B-Paywize Pty Ltd have been charged with crimes or are subject to legal action. Jinte Net Blockchain Pty Ltd and DIGI-SEND E-Money Pty Ltd were found to be operating businesses that no longer require registration.
Struggling exchanges FTX Express and Zipmex Australia have been removed from the Digital Currency Exchange Register after filing for bankruptcy. AUSTRAC emphasized that a significant portion of financial crime investigations are hindered by cryptocurrency exchanges’ failure to disclose suspicious transactions.
Thomas warned that businesses in the crypto space not meeting their obligations can expect to hear from AUSTRAC. The regulator has sent compliance reminders to 106 companies since January and has pledged to monitor the 417 registered cryptocurrency exchanges in Australia that it regulates.
With the rise of cryptocurrency transactions, regulators like AUSTRAC are stepping up efforts to ensure compliance with anti-money laundering laws. The agency’s actions send a clear message to crypto providers that they must adhere to regulations or face consequences.