In a stern regulatory action, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken strict measures against 13 cryptocurrency exchanges and money transfer businesses for failing to comply with the country’s anti-money laundering (AML) and counter-terrorism financing (CTF) laws. The move comes as part of AUSTRAC’s intensifying scrutiny of the rapidly expanding crypto industry in Australia.
AUSTRAC Targets Non-Compliant Crypto Firms
According to AUSTRAC’s announcement on February 17, 2025, the regulator canceled, suspended, or refused the registration of 13 digital currency exchanges and money transfer firms following a year-long investigation into their alleged breaches of AML/CTF regulations. The affected companies include Auasia Trading Pty Ltd, Amco Travelling and Exchange Pty, and Blue Star Exchange Pty Ltd, among others.
The actions taken by AUSTRAC ranged from registration cancellations to suspensions and refusals to renew, depending on the severity of the alleged compliance failures.
Strict Oversight in a Booming Industry
With over 400 registered crypto exchanges and 5,000 money transfer providers in Australia, AUSTRAC is determined to enforce strict compliance in the burgeoning sector. Since January 2024, the regulator has issued compliance reminders to 106 entities, warning of further sanctions if they fail to adhere to the regulations.
AUSTRAC will continue to closely monitor businesses through its ‘Crypto Taskforce’ and take necessary actions against non-compliant entities.
– AUSTRAC spokesperson
Implications for the Crypto Industry
AUSTRAC’s aggressive enforcement stance sends a clear message to the crypto industry in Australia: comply with AML/CTF regulations or face severe consequences. The costly and complex compliance requirements may drive smaller crypto firms out of business or force them to relocate, potentially consolidating the industry around larger, well-resourced players.
- Strict AML/CTF compliance is non-negotiable for crypto businesses in Australia
- Smaller crypto firms may struggle to meet the high compliance costs and complexities
- Industry consolidation around larger, compliant players is a likely outcome
Key Takeaways
- AUSTRAC has taken enforcement actions against 13 crypto firms for AML/CTF non-compliance
- The regulator is determined to enforce strict oversight in the booming crypto industry
- Costly compliance requirements may drive industry consolidation and favor larger players
As regulators worldwide grapple with the challenges posed by cryptocurrencies, AUSTRAC’s actions demonstrate Australia’s resolve to bring the industry under tight control. While strict compliance may be painful for some, it could also pave the way for greater mainstream acceptance and adoption of digital assets in the long run. The crypto industry in Australia must now adapt to this new reality or risk being left behind.
