Australia’s finance watchdog to crack down on dormant crypto exchanges
Australia's financial intelligence agency, AUSTRAC, has instructed inactive registered crypto exchanges to withdraw their registrations to prevent potential scams. There are 427 registered exchanges, with many suspected to be inactive and vulnerable to criminal exploitation. AUSTRAC is contacting these exchanges, emphasizing the need to maintain updated operational details. Businesses must register with AUSTRAC to offer cash-to-crypto conversions, including ATMs, as the agency monitors for crimes like money laundering and tax evasion. Registrations can be canceled if a business is deemed inactive. Since 2019, ten firms have had their registrations canceled, including FTX Express in June 2024. AUSTRAC plans to publish a list of registered exchanges to enhance public confidence and combat scams. The agency recently took action against 13 remittance and crypto service providers, with ongoing investigations into over 50 others for compliance issues. Australia is in the process of drafting a regulatory framework for crypto exchanges under existing financial laws.
