'Use It or Lose It': Australian Watchdog Cracks Down on Dormant Crypto Exchanges
Australia's financial watchdog, AUSTRAC, is urging dormant cryptocurrency businesses to either remain active or face registration cancellation as part of a crackdown aimed at consumer protection and reducing criminal activity. AUSTRAC has identified many of the 427 registered digital currency exchanges (DCEs) as inactive and is encouraging them to withdraw voluntarily. CEO Brendan Thomas highlighted the risks of criminal exploitation associated with inactive DCEs, citing issues like money laundering and scams. Cancellations will be published online, and a public register will be established for legitimate providers. Recent actions have already led to the cancellation of registrations for several companies. AUSTRAC's intensified scrutiny follows a year-long investigation, with over 50 additional firms under review. Non-compliant businesses risk suspension or deregistration. This regulatory push coincides with an upcoming election, where crypto regulation is a significant issue, prompting calls for clearer policies from industry players like Coinbase.
