Changes are underway in the digital sector of the Green Continent. The sector will be subject to stricter supervision. This step is necessary to prevent fraudulent activity. According to an analysis of the current state of Australia's cryptocurrency sector, more than 400 registered exchanges and around 5,000 money transfer services are at high risk of being used for money laundering, fraud, and terrorism financing. These are staggering numbers! Following an inspection, the Australian regulator has imposed restrictions on 13 local crypto companies and launched probes into 50 firms.
According to Brendan Thomas, CEO of AUSTRAC, the agency uncovered “systemic issues related to insufficient or entirely missing reporting of suspicious transactions by crypto companies.” Besides, the agency has collected plenty of evidence showing violations of the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF), including failures in customer identity verification (KYC).
“We launched an investigation in early 2024 to identify incompetent crypto service providers. We remind the public that failure to comply with AML/CTF obligations can result in criminal prosecution for company leadership, and firms that ignore regulatory rules will lose their licenses,” Thomas pointed out.
Previously, AUSTRAC called on all local crypto exchanges and money transfer services to implement an AML/CTF program, including risk assessments and staff training. This measure is essential to avoid regulatory sanctions. In addition, the Australian Treasury has introduced a plan to develop legislation in the digital asset sector. Notably, this document envisions the creation of a unified, regulated ecosystem.
