On Feb. 17, the Australia’s AML Regulator has targeted 13 firms, including crypto exchanges and money remittance companies, for violations of anti-money laundering laws. Alongside these actions, the regulator is investigating more than 50 additional companies for similar issues.
Australia cracks down on crypto exchanges and money transfer services. Source: XAustralia’s crypto industry has 417 registered digital currency exchanges and 5,112 remittance providers. The Australian Transaction Reports and Analysis Center (AUSTRAC) issued formal alerts to some of these companies, warning them of potential penalties if they fail to address compliance concerns.
AUSTRAC’s CEO, Brendan Thomas, explained that these alerts are for companies that do not report suspicious transactions. He noted that many providers are under-reporting or failing to report potentially illegal activities. This is a serious breach of Australia’s anti-money laundering regulations.
Registration Cancellations Due to Criminal Histories
The regulator refused to renew registrations for six companies after discovering that key executives had been charged with or convicted of serious crimes. AUSTRAC stated that these individuals’ criminal records reflected poorly on their honesty and integrity. This makes them unfit to run financial services. The six companies that lost their registrations are Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, Blue Star Exchange Pty Ltd, B-Paywize Pty Ltd, W Solution Group Pty Ltd, and TSS Farms & Group Pty Ltd.
In addition to these cancellations, three other companies—DIGI-SEND E-Money Pty Ltd, Rootie Technology Pty Ltd, and Jinte Net Blockchain Pty Ltd—ceased operations, leading to their removal from AUSTRAC’s register.
Two Australian Crypto Companies Under Strict Monitoring
Two other companies, Currencyfair Australia Pty Ltd and Currencyfair Limited, failed to meet registration deadlines. However, they were granted conditional registration. AUSTRAC warned that if these companies do not meet the conditions imposed, their licenses could be suspended or revoked.
Two well-known crypto exchanges, FTX Express Pty Ltd and Zipmex Australia Pty Ltd, were also removed from Australia’s digital currency exchange register. Both companies collapsed during the crypto market downturn. FTX Express was affected by the global bankruptcy of its parent company, FTX, and Zipmex Australia facing insolvency issues.
AUSTRAC Tightens Oversight on Australia Crypto Industry
Since December 2024, AUSTRAC has been placing greater scrutiny on the cryptocurrency industry. The agency launched a dedicated task force to investigate illegal activities involving crypto ATMs. Under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act of 2006, all digital currency exchanges, including crypto ATM operators, must register with AUSTRAC. They are also required to conduct identity checks through Know Your Customer (KYC) procedures. Companies also need to report large cash transactions over $10,000, along with any suspicious activities.
By taking legal actions, AUSTRAC is trying to improve compliance in the crypto sector. According to AUSTRAC data, Australia has become the third-largest hub for Bitcoin and crypto ATMs globally. It has over 1,453 machines in operation as of December 2024, an increase from just 67 in August 2022.
Australia ranks third globally for the number of crypto ATMs, following the United States and Canada. Source: Coin ATM RadarInvestment Scams and Crypto Fraud Under ASIC’s Radar
The Australian Securities and Investment Commission (ASIC), the country’s financial markets regulator, has also taken steps to combat fraud in the crypto sector. ASIC reported that since July 2023, it has taken down over 5,500 fake investment websites, more than 1,000 phishing links, and 615 fraudulent crypto platforms. According to ASIC, investment scams, mainly through fake trading platforms, caused an estimated $1.3 billion in losses in 2023.
ASIC revealed that many of these scams relied on fake news stories and deepfake videos. Some of these contents featured well-known Australian celebrities, to trick victims into investing in fraudulent schemes. Most of the sites removed by ASIC were linked to these deceptive practices.
New Rules Formed For Australia Crypto Industry
AUSTRAC and ASIC are pushing for stricter rules to safeguard the public from financial crimes in the crypto industry. In December 2024, AUSTRAC proposed new rules to strengthen anti-money laundering and counter-terrorism financing regulations for the digital currency sector. The proposed changes aim to close loopholes and ensure that all crypto businesses comply with reporting requirements.
At the same time, ASIC released a consultation paper proposing that many digital currencies should be classified as financial products. This change would mean that crypto firms would need to obtain financial services licenses, similar to traditional investment firms.
AUSTRAC’s CEO Brendan Thomas emphasized that these measures are essential to protect consumers. He warned that the regulator would continue to monitor the industry closely and take swift action against any company that fails to comply with the law.
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