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Crypto exchanges were among 50 firms that received an alert from the Australian Anti-Money Laundering watchdog over possible compliance issues.
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Australia’s Anti-Money Laundering regulator has taken action against 13 remittance service providers and crypto exchanges, with over 50 others still being investigated regarding possible compliance issues.
Australian Transaction Reports and Analysis Center (AUSTRAC) CEO Brendan Thomas said in a Feb. 17 statement that the regulator refused registration renewal for six providers because key personnel were either convicted, prosecuted or charged with a serious offense that “reflected adversely on their honesty or integrity.”
Over 50 other remittance providers and crypto exchanges were sent alerts, a precursor to potential regulatory action, over concerns that operators may not be reporting suspicious matters and transactions.
“The blitz follows AUSTRAC’s analysis that identified systemic non-reporting and under-reporting in the remittance and digital currency exchange sectors.”
“Early last year, we initiated an investigation to identify and eliminate non-compliant providers and improve the industry’s reporting on suspicious matters,” Thomas added.
Thomas said two other providers had conditions placed on their registrations after failing to meet requirements before the deadline.
As a result, they are now on notice, with failure to meet conditions possibly resulting in suspension or cancellation of their registrations. Three other entities who were refused registration no longer operate in Australia.
Meanwhile, two collapsed crypto exchanges — FTX Australia subsidiary FTX Express and Zipmex Australia — were removed from the country’s Digital Currency Exchange Register following insolvencies.
Related: Rising crypto crimes in Australia prompt call for tougher regulations
There are 417 digital currency exchanges and 5,112 remittance registrations with AUSTRAC in Australia, according to AUSTRAC.
In December last year, Thomas said the government agency was shifting its focus to the cryptocurrency industry in 2025 amid a crackdown on crypto ATM providers who might be flouting Anti-Money Laundering laws.
Australia is the third-largest hub for Bitcoin (BTC) and crypto ATMs. Coin ATM Radar data shows over 1,453 ATMs, up from 67 in August 2022.
Australia has the world’s third-largest number of crypto ATMs, behind the US and Canada. Source: Coin ATM Radar
In the same month, AUSTRAC proposed stricter Anti-Money Laundering and counter-terrorism financing (AML/CTF) rules to tighten the oversight of the crypto industry and combat financial crime.
The Australian Securities and Investment Commission also released a consultation paper on proposed guidance for crypto in December, placing many digital assets under the category of financial products and requiring firms dealing in crypto to be licensed.
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This article first appeared at Cointelegraph.com News
