AUSTRAC Launches Supervision Campaigns as Australia's Crypto Regulatory Reforms Kick In
AUSTRAC, Australia’s financial intelligence agency, has initiated two supervisory campaigns targeting the country’s virtual asset sector in anticipation of new anti-money laundering (AML) regulations. The first campaign focuses on 36 over-the-counter crypto-to-cash operators, assessing how they manage conversion-related risks. The second targets 27 local crypto exchanges, reviewing their readiness for upcoming reforms and their governance structures. These efforts aim to ensure crypto businesses comply with expanded AML and counter-terrorism financing (CTF) requirements under the revised regulatory framework. The reforms, effective March 31, apply to a broader range of virtual asset service providers (VASPs), including custody and brokerage services, replacing the narrower category of “digital currency exchanges.” AUSTRAC’s oversight now encompasses more businesses in line with international standards, and new Travel Rule requirements for virtual asset transfers will be mandatory from July 1. The agency emphasizes ongoing guidance to help businesses adapt to these changes, reflecting a shift toward a risk-based, sector-wide regulatory approach.
