AUSTRAC Cracks Down: 13 Crypto Exchanges and Remittance Providers Face Action

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken regulatory action against 13 remittance service providers and cryptocurrency exchanges, while issuing compliance warnings to over 50 institutions. This move comes as a result of the agency's discovery of systemic issues in the remittance and cryptocurrency exchange industry, including unreported and underreported suspicious transactions.

AUSTRAC CEO Brendan Thomas stated that the agency rejected renewal registration applications from 6 providers due to key personnel in these institutions being involved in serious illegal activities that affect their integrity. Additionally, 2 providers were subject to conditional restrictions for failing to meet requirements within the specified timeframe.

Currently, there are 417 digital currency exchanges registered with AUSTRAC in Australia, and 5,112 remittance registration institutions. It is worth noting that two defunct cryptocurrency exchanges in Australia, FTX's Australian subsidiary FTX Express and Zipmex Australia, have been removed from the country's cryptocurrency exchange registration list.

AUSTRAC stated that this action was taken as a result of the agency's discovery of systemic issues in the remittance and cryptocurrency exchange industry, including unreported and underreported suspicious transactions. The agency plans to strengthen its regulation of the cryptocurrency industry by 2025.