AUSTRAC Cracks Down: 13 Crypto Firms Face License Suspensions and Warnings

Australia's anti-money laundering (AML) regulator, AUSTRAC, has taken decisive action against 13 remittance and crypto exchange providers for non-compliance, aiming to strengthen financial safeguards. After a year-long investigation, AUSTRAC has issued warnings and suspended licenses to businesses that failed to report suspicious transactions correctly.

In a recent announcement, AUSTRAC CEO Brendan Thomas stated that the enforcement warnings could lead to future enforcement actions. The regulator's audit resulted in nine provider companies losing their license renewals or having them suspended or canceled due to non-compliance. Additionally, two providers were placed under notice for non-compliance violations.

The actions taken by AUSTRAC have had a significant impact on several major industry participants. Companies such as Auasia Trading Pty Ltd and Amco Travelling and Exchange Pty Ltd, along with others, have faced damage to their business reputations after key personnel received convictions and prosecutions for criminal offenses. Two organizations, DIGI-SEND E-Money Pty Ltd and Rootie Technology Pty Ltd, and Jinte Net Blockchain Pty Ltd, have exited their operations and are no longer registered entities.

Currencyfair Australia Pty Ltd and Currencyfair Limited did not complete their registration process within the specified deadline. However, they successfully registered with certain conditions attached to their approval. AUSTRAC continues to monitor these providers' compliance standards, and failure to meet the conditions may result in the suspension or cancellation of their registration.

Zipmex Australia Pty Ltd and FTX Express Pty Ltd were removed from the Digital Currency Exchange Register due to insolvency. AUSTRAC is investigating non-compliant digital currency platforms to improve the reporting of suspicious deals and maintain financial safeguards.

In an effort to diminish potential money laundering threats in digital currency exchange markets, AUSTRAC has started sending obligation reminders to 106 entities operating across multiple sectors since January 2024. The regulator employs both its Crypto Taskforce protocol and extensive regulatory initiatives to achieve this goal.

The integrity of the financial system relies heavily on AUSTRAC's investigative activities. The regulator uses reports received from registered entities to create valuable investigative information for criminal investigations. AUSTRAC will continue to address risks, particularly in the digital currency exchange sector, through its Crypto Taskforce and broader regulatory activities.