The Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s primary financial regulator, is intensifying its stance against inactive cryptocurrency exchanges. These exchanges are being urged to update their operations or risk being delisted in an effort to combat crypto scams and money laundering activities that could potentially exploit these dormant listings.
There appears to be a significant number of inactive Digital Currency Exchanges (DCEs) amidst the 427 registered entities. AUSTRAC has issued a stern warning to these dormant exchanges, urging them to update their details promptly or face removal from the register.
The plan was divulged on AUSTRAC’s government website, stating the existence of several inactive DCEs. These exchanges were given the option to either voluntarily withdraw or face delisting. AUSTRAC voiced concerns over the potential misuse of inactive DCEs by scammers for illicit activities like money laundering. The regulator further emphasized the need for DCEs to stay current with their registration processes and announced plans to generate a public list of registered DCEs to help consumers avoid scams.
Brendan Thomas, AUSTRAC’s CEO, reiterated the importance of businesses updating their details as part of the registration process. He cautioned that failure to do so could lead to delisting. He stressed the importance of maintaining consumer trust and averting the misuse of DCEs. According to him, inactivity could be a valid ground for canceling a registration.
AUSTRAC’s responsibilities include the analysis of business intelligence to curb scam activities in Australia. The agency regards digital assets as a high-risk market and hence focuses a great deal of attention on them. AUSTRAC has observed a concerning surge in crypto scams, necessitating more proactive measures to avert catastrophic outcomes.
All Australian businesses intending to facilitate conversions between cash and crypto must register with AUSTRAC. The agency oversees these DCEs to detect money laundering, tax evasion, and terror financing. AUSTRAC reserves the right to delist any business identified with discrepancies.
This recent announcement builds on AUSTRAC’s previous measures, including the February 2025 crackdown on illegitimate crypto businesses, involving 13 financial institutions and over 50 crypto businesses. The operation targeted businesses that underreported or failed to report their activities, with AUSTRAC deciding which businesses warranted further legal action.
