Key Notes

Key Notes:

AUSTRAC has taken action against 13 providers, rejected six business renewals over criminal ties, and issued 106 warnings.CEO Brendan Thomas warned that non-compliant businesses in digital currency and remittance services will face stricter regulatory measures.Zipmex Australia and FTX Express lost their exchange status due to insolvency, highlighting ongoing financial instability in the crypto sector.

Australia’s financial watchdog has tightened its grip on crypto exchanges and remittance providers, targeting those failing to meet compliance standards. In a sweeping regulatory crackdown, the Australian Transaction Reports and Analysis Center (AUSTRAC) has taken strict action against 13 providers while keeping over 50 others under scrutiny for potential violations.

The crackdown is part of a year-long enforcement effort aimed at tackling non-compliance, with AUSTRAC issuing multiple alerts to businesses suspected of failing to report suspicious transactions. The agency’s CEO Brendan Thomas emphasized that these alerts serve as a warning and could lead to stricter regulatory measures.

“Late last year AUSTRAC cancelled, suspended and refused renewals of registration for 9 providers that had failed to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act,” Thomas stated.

AUSTRAC rejected renewal applications for six businesses due to key personnel’s involvement in serious criminal activities. Individuals associated with Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty Ltd, Blue Star Exchange Pty Ltd, B-Paywize Pty Ltd, W Solution Group Pty Ltd, and TSS Farms & Group Pty Ltd faced convictions, prosecutions, or charges that raised integrity concerns.

Authorities also revoked registrations for DIGI-SEND E-Money Pty Ltd, Rootie Technology Pty Ltd, and Jinte Net Blockchain Pty Ltd, citing discontinued operations that no longer required AUSTRAC oversight. Meanwhile, Currencyfair Australia Pty Ltd and Currencyfair Limited remain registered but now operate under conditions after missing compliance deadlines.

In a separate enforcement action, Zipmex Australia Pty Ltd and FTX Express Pty Ltd lost their Digital Currency Exchange Register status following insolvency. In December 2024, the Australian government agency ASIC filed a lawsuit against Binance Australia Derivatives allegedly wrongly categorized over 500 regular customers as wealthy investors.

Since early 2024, AUSTRAC has issued compliance reminders to 106 entities across multiple financial sectors. With 417 digital currency exchanges and 5,112 remittance businesses registered in Australia, the agency remains vigilant in enforcing anti-money laundering and counter-terrorism financing laws.

AUSTRAC has emphasized that non-compliant operators will face consequences. Businesses failing to meet obligations should expect regulatory action, Thomas warned, underscoring the agency’s firm approach to enforcement. Thomas said:

“Businesses working in this space who are not meeting their obligations can expect to hear from us.”

The regulator has uncovered widespread under-reporting and non-reporting in remittance services and crypto exchanges. Reports from these sectors play a crucial role in supporting law enforcement efforts to combat financial crime. AUSTRAC’s intelligence contributes to thousands of criminal investigations each year.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.

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