AUSTRAC Cracks Down on Inactive Crypto Exchanges, Revokes 10 Registrations Since 2019

Australia’s financial intelligence agency, AUSTRAC, has intensified its scrutiny on cryptocurrency exchanges, particularly those that are inactive. The agency has issued a warning to dormant exchanges, urging them to either resume operations or voluntarily deregister. This move is part of a broader effort to curb the criminal misuse of inactive platforms. AUSTRAC revealed that out of the 427 crypto exchanges currently registered, a significant number are suspected to be inactive and at risk of being exploited by scammers. AUSTRAC CEO Brendan Thomas emphasized the importance of keeping registration details current and active, warning that those failing to do so will be delisted under a “use it or lose it” directive.

To offer crypto-related services such as cash-to-crypto conversions or operate crypto ATMs in Australia, businesses must register with AUSTRAC, which oversees compliance with anti-money laundering and counter-terrorism financing laws. Since 2019, ten crypto businesses have had their registration revoked for inactivity or non-compliance, including the local subsidiary of the collapsed crypto firm FTX, which was deregistered in June 2024. AUSTRAC plans to publish a public list of registered exchanges to help Australians identify legitimate platforms and avoid scams. The agency’s broader compliance sweep has already led to enforcement actions against 13 remittance and crypto service providers earlier this year, while over 50 others are still under investigation. Additionally, six providers were denied registration renewals due to serious criminal allegations against key personnel.

Despite these enforcement actions, Australia is still in the process of formalizing comprehensive crypto regulation. The government began consultations in August 2022 to develop a regulatory framework. In March 2025, ahead of the federal election, the government proposed regulating crypto exchanges under existing financial services laws. This regulatory push comes as other countries also tighten their oversight on the crypto industry. The Bank of Italy identified Bitcoin and other digital assets as emerging risks to investors and financial stability in its latest Financial Stability Report published in April 2025. The central bank pointed out the growing integration of cryptocurrencies with the broader financial system and warned that the rapid rise in Bitcoin’s value and the volatility of digital assets could have spillover effects beyond the crypto sector. The report highlighted the increasing connections between the crypto ecosystem, traditional finance, and the real economy, posing systemic threats.

The Bank of Italy’s concerns are similar to recent comments by Italy’s economy and finance minister, who warned that the influence of dollar-based stablecoins may be more threatening to Europe’s economic sovereignty than the tariffs imposed by the United States. The minister believes it is crucial to strengthen the euro’s global role and accelerate the development of the Digital Euro as a means to counter foreign digital dominance. The central bank’s report also flagged risks associated with stablecoins, particularly those pegged to the US dollar. It warned that if these digital assets become deeply embedded in the financial system, reliance on US government bonds to maintain their pegs could introduce new vulnerabilities. A disruption in either the stablecoins or their underlying reserves could create ripple effects across global markets.

While some countries are keeping a watchful eye on the crypto industry, others are broadening their horizons to welcome new crypto partnerships. Crypto exchange Bitget recently partnered with Avalanche to launch a $10 million initiative aimed at supporting Web3 development in India, one of the world’s fastest-growing crypto and tech markets. The collaboration will fund mini-grants, scholarships, hackathons, and educational workshops, initially focusing on Delhi and Bangalore. These two cities are at the forefront of India’s digital innovation. Delhi is the most populous city, and Bangalore, often dubbed India’s “Silicon Valley,” has seen large increases in crypto engagement. India’s appetite for digital assets surged over the past two years, with data from local exchange CoinSwitch showing that investment in cryptocurrencies accelerated significantly in 2024. The majority of Indian crypto investors are between the ages of 18 and 35. While Bitcoin and Ethereum remain widely traded, Dogecoin (DOGE) was the most invested asset in 2024, with Shiba Inu (SHIB) and Pepe (PEPE) also gaining popularity.

The partnership is made at a time when global crypto exchanges are eyeing India for expansion. In early 2025, Bybit resumed operations after registering with local authorities, and Coinbase began negotiations with regulators to reenter the market. These moves all prove India’s rising importance as a hub for digital finance and innovation. India is also engaged in broader strategic negotiations with the United States, including a potential bilateral trade agreement aimed at avoiding new tariffs under President Donald Trump’s administration. As part of these talks, India is seeking access to key technologies and exports. According to Web3 venture capital firm Hashed Emergent, India already accounts for 12% of the global Web3 developer base and contributed 17% of all new crypto developers in 2024. All of this proves its role as a major force in the evolution of blockchain technology.