Australia’s financial watchdog, AUSTRAC, is cleaning up the crypto space by targeting inactive exchanges. They’re essentially saying, “Use it or lose it!”
Inactive Exchanges Get a Warning
AUSTRAC has noticed many of the 427 registered Australian crypto exchanges are basically abandoned, yet still listed. CEO Brendan Thomas issued a stern warning: These inactive companies need to either resume operations or deregister, or face having their registrations cancelled. The concern is that criminals might buy these dormant businesses to exploit their existing registrations for illegal activities. All businesses handling crypto transactions (like ATM operators) must register with AUSTRAC to help prevent money laundering, terrorist financing, and tax evasion.
Cancellations Already Happening
AUSTRAC isn’t just issuing warnings; they’ve already taken action. Ten companies have had their registrations cancelled since 2019, including FTX Express in June 2024. This shows AUSTRAC’s willingness to remove companies that no longer operate legitimately.
A Public List for Consumer Protection
To help Australians avoid scams, AUSTRAC will soon release a public list of registered crypto exchanges. This will make it easier for people to verify if a crypto service is legitimate before using it. The goal is to build trust in the crypto industry by making it clear which businesses are properly regulated.
Wider Crackdown and Political Implications
This crackdown on inactive exchanges is just one part of a larger effort. AUSTRAC recently took action against numerous remittance providers and exchanges, with more investigations underway. Several providers were even denied registration renewals due to criminal records of their staff. This increased regulatory activity is happening as Australia develops broader crypto regulations, highlighting how digital currency regulation is becoming a major political issue ahead of the upcoming federal election.