AUSTRAC Intensifies Oversight of Cryptocurrency Exchanges, Warns of Scams

Australia’s financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has intensified its efforts to enhance oversight of cryptocurrency exchanges. The agency has begun reaching out to exchanges that appear to have ceased operations, out of the 427 businesses currently registered. AUSTRAC emphasized that registered businesses must keep their details up to date, including information about services that are no longer provided. The agency highlighted that cryptocurrency can be exploited by criminals for money laundering, scams, and money mule activities, leading to many people falling victim to digital currency scams.

AUSTRAC noted that all exchanges and crypto ATM providers must be officially registered before offering fiat-crypto conversion services. Inactive businesses pose a vulnerability that could be targeted and misused. Nicole Thomas, AUSTRAC’s national manager for regulatory operations, described the crypto sector as “high risk,” stating that registration lends a degree of legitimacy that bad actors can exploit if oversight lapses. The agency warned that it may cancel registrations if there are reasonable grounds to believe a business is no longer operational.

Additionally, AUSTRAC announced plans to launch a publicly searchable register, enabling consumers to verify whether a crypto exchange is officially registered and under regulatory scrutiny. This move aims to protect consumers from potential scams and ensure that only legitimate exchanges operate within the country. The agency’s proactive approach underscores its commitment to maintaining the integrity of the financial system and safeguarding against criminal activities in the cryptocurrency space.