Australia’s financial watchdog, AUSTRAC, is taking decisive steps to clean up the country’s cryptocurrency space. The agency is cracking down on inactive digital currency exchanges (DCEs), warning that unused platforms could be hijacked by criminals for money laundering or fraud.
Out of the 427 registered DCEs, AUSTRAC believes a significant number are no longer operational. To address this, the agency is urging these dormant exchanges to voluntarily cancel their registrations. If they fail to comply, AUSTRAC will begin revoking licenses to prevent potential abuse.
Brendan Thomas, AUSTRAC’s CEO, highlighted the risks posed by idle registrations, noting that they can easily be exploited by bad actors and undermine the safety of the financial system.
Public Register to Boost Transparency
To support consumer protection, AUSTRAC will soon release a public list that identifies both active and deregistered exchanges. This move is designed to help Australians verify the legitimacy of crypto platforms and steer clear of potential scams.
The register is part of a broader push to bring greater transparency to the industry. By giving the public access to clear information, AUSTRAC hopes to build trust and accountability within the sector.
Part of a Larger Regulatory Overhaul
This latest effort aligns with Australia’s wider strategy to tighten its grip on the crypto industry. In recent months, AUSTRAC has taken enforcement actions against several crypto firms that failed to meet compliance standards.
Meanwhile, the Australian Securities and Investments Commission (ASIC) is proposing new rules that would require crypto companies to obtain an Australian Financial Services Licence (AFSL), further integrating crypto oversight into the country’s financial regulatory framework.
By removing inactive players and enforcing stricter rules, Australia is signaling its intent to create a safer, more transparent crypto market. Regulators are determined to protect consumers and ensure that only responsible, compliant businesses operate in this fast-evolving space.
