As part of efforts to tackle compliance issues within the digital currencies sector, AUSTRAC has taken action against thirteen crypto companies.
AUSTRAC released a statement on Monday stating that this latest round of action is part of the year-long AUSTRAC investigation into digital currency and remittance exchanges. This has led to over 50 more firms being investigated for potential violations.
AUSTRAC’s strategy for regulating Australia’s rapidly expanding crypto-sector includes this new crackdown.
Brendan Thomas, CEO of AUSTRAC, said that the financial intelligence agency had canceled, suspend or refused to renew registrations for nine companies who failed to comply with Anti-Money Laundering and Counter-Terrorism Financing Act requirements.
Auasia Trading Pty Ltd. Amco Travelling and Exchange Pty. and Blue Star Exchange Pty Ltd.
“AUSTRAC’s reporting entities are the front line of defence in detecting criminal activity,” Thomas added in a written statement that the companies are vital in detecting suspicious transactions, and in maintaining the integrity of Australia’s financial system.
AUSTRAC also placed Conditional Registrations for Currencyfair Australia Pty Ltd, and Currencyfair Limited after they failed to comply with the compliance requirements in the time specified.
AUSTRAC issued compliance reminders since January 2024 to 106 organizations, encouraging them to comply with their obligations, or else face regulatory action.
AUSTRAC has warned that with over 400 digital currency providers and more than 5 000 remittance service providers registered in Australia today, firms who fail to adhere can face severe consequences. This could include suspension or deregistration.
Zipmex Australia Pty Ltd, and FTX Express Pty Ltd have also been removed from the Digital Currency Exchange Register after their insolvency. This shows how the regulator holds non-compliant companies accountable.
"AUSTRAC remains concerned about money laundering risks in the DCE sector in particular and will continue to address these concerns through the Crypto Taskforce," Thomas said.
Australia cracks down on crypto-crime
AUTRAC’s crypto taskforce, which initially focused its efforts on mitigating the risk associated with ATMs that use cryptography to store money, has since expanded their operations in an effort to strengthen regulatory enforcement within the entire industry.
Operation Kraken in October 2024 saw the Australian Federal Police seize $6.4 Million worth of crypto, allegedly from the masterminds behind the Ghost encrypted app, used by organized criminal syndicates.
Victoria Police arrested a criminal syndicate on Monday accused of thefts from ATMs in Melbourne.
Police arrested four individuals after discovering an "Aladdin's cave" Items stolen, such as trading cards and guns worth $31,800.
ASIC, the Australian Securities and Investments Commission has intensified their scrutiny on the crypto-sector. They took legal action against Binance Australia last December after it misclassified retail clients and denied them protection as consumers.