Australia’s financial watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), is intensifying its efforts to combat money laundering and terrorism financing. On February 17, AUSTRAC CEO Brendan Thomas revealed the regulator’s action against 13 remittance service providers and crypto exchanges. Over 50 others are under investigation for potential compliance failures.
Six providers faced non-renewal of their registration, as key personnel were linked to serious offenses that jeopardized the integrity of their operations. These individuals were either convicted, prosecuted, or charged with crimes that raised concerns about their honesty. Meanwhile, more than 50 other entities received warning alerts, signaling the possibility of future regulatory actions due to failure in reporting suspicious transactions.
Thomas explained that this crackdown was a result of AUSTRAC’s investigation into systemic non-reporting and under-reporting issues within Australia’s remittance and crypto sectors. “Our investigation aims to eliminate non-compliant providers and improve the industry’s transparency on suspicious matters,” he said.
In addition to these developments, two entities have been placed under closer scrutiny with conditions on their registrations. Non-compliance could lead to suspensions or cancellations. Meanwhile, three providers who were refused registration no longer operate in Australia.
This action also follows the insolvencies of FTX Express and Zipmex Australia, two crypto exchanges removed from the Digital Currency Exchange Register. As of now, AUSTRAC oversees 417 digital currency exchanges and over 5,100 remittance registrations in the country.
Australia has emerged as a significant hub for cryptocurrency, ranking as the third-largest Bitcoin ATM destination globally. AUSTRAC is increasing its focus on the cryptocurrency industry, with stricter Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules expected to tighten oversight. Additionally, the Australian Securities and Investment Commission’s new guidelines may soon classify digital assets as financial products, requiring firms to obtain licenses.
Also Read: Monochrome Files for Litecoin ETF in Australia
The regulatory actions reflect Australia’s growing commitment to safeguarding its financial systems and ensuring that the crypto industry adheres to global compliance standards.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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