AUSTRAC Targets 13 Crypto Exchanges and Remittance Providers for Compliance Failures
Australia's financial authority, AUSTRAC, has intensified regulations on crypto exchanges and remittance providers, focusing on compliance failures. Key actions include:
- 13 providers have faced strict actions for non-compliance.
- Over 50 additional businesses are under scrutiny for potential violations.
- AUSTRAC issued multiple alerts to warn businesses about suspicious transaction reporting failures.
Brendan Thomas, AUSTRAC's CEO, noted that previous enforcement resulted in the cancellation or suspension of registrations for 9 providers due to anti-money laundering obligations. Six renewal applications were rejected because of key personnel's criminal activities.
Business Registrations Affected
- DIGI-SEND E-Money Pty Ltd, Rootie Technology Pty Ltd, and Jinte Net Blockchain Pty Ltd had their registrations revoked due to discontinued operations.
- Currencyfair Australia Pty Ltd and Currencyfair Limited remain registered but face operational conditions after compliance failures.
- Zipmex Australia Pty Ltd and FTX Express Pty Ltd lost their Digital Currency Exchange Register status following insolvency.
Compliance Alerts Issued
- Since early 2024, AUSTRAC has sent compliance reminders to 106 entities across various financial sectors.
- The agency oversees 417 digital currency exchanges and 5,112 remittance businesses in Australia.
AUSTRAC aims to enforce anti-money laundering laws rigorously. Non-compliant operators can expect regulatory actions as the agency seeks to address widespread under-reporting and non-reporting issues in the sector.