Australia’s Financial Watchdog Takes Action Against 13 Crypto Firms

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken regulatory action against 13 crypto firms as part of its efforts to address compliance failures within the digital currency sector.

The latest round of actions is part of AUSTRAC’s year-long investigation into remittance and digital currency exchanges, which has identified over 50 additional firms under scrutiny for potential violations, as per a Monday statement.

AUSTRAC has launched this crackdown as part of its strategy to regulate Australia’s expanding crypto sector.

The financial intelligence agency has canceled, suspended, or refused to renew the registration of nine firms that failed to meet Anti-Money Laundering and Counter-Terrorism Financing Act obligations, according to AUSTRAC CEO Brendan Thomas.

Among these firms are Auasia Trading Pty Ltd, Amco Travelling and Exchange Pty, and Blue Star Exchange Pty Ltd.

“AUSTRAC’s reporting entities are the front line of defence in detecting criminal activity,” Thomas said in a statement, adding that these companies play a key role in identifying suspicious transactions and maintaining the integrity of the Australian financial system.

In addition to the cancellation of registrations, AUSTRAC has placed conditional registrations on Currencyfair Australia Pty Ltd and Currencyfair Limited, after the firms failed to meet compliance requirements within the specified time period.

Since January 2024, AUSTRAC has issued compliance reminders to 106 entities, urging them to meet their obligations or face further regulatory action.

With over 400 digital currency exchanges and more than 5,000 remittance providers currently registered in Australia, AUSTRAC is flagging that firms that fail to comply can expect serious consequences, including possible suspension or deregistration.

Zipmex Australia Pty Ltd and FTX Express Pty Ltd were also removed from the Digital Currency Exchange Register following their insolvencies, pointing to how the regulator is holding non-compliant businesses accountable.

“AUSTRAC remains concerned about money laundering risks in the DCE sector in particular and will continue to address these concerns through the Crypto Taskforce,” Thomas said.

Australia’s crypto crime crackdown

Initially focused on addressing risks associated with crypto ATMs, AUTRAC’s crypto task force has expanded its operations to enhance regulatory enforcement across the industry.

In October 2024, the Australian Federal Police (AFP) seized $6.4 million in crypto as part of Operation Kraken, targeting an alleged mastermind behind the encrypted Ghost app used by organized crime syndicates.

On Monday, Victoria Police dismantled a crime syndicate accused of stealing from crypto ATMs across Melbourne.

Police arrested four individuals after discovering an “Aladdin’s cave” of stolen items, including trading cards worth around $31,800 and firearms.

The Australian Securities and Investments Commission (ASIC) also ramped up its scrutiny of the crypto sector, notably taking legal action against Binance Australia in December for misclassifying retail clients and denying them consumer protection.