In its latest report, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has reported an increase in the use of virtual assets for crime. The AUSTRAC is a financial intelligence agency of the Australian government.
The agency described how bad actors have found a new means of money laundering in virtual assets, cryptocurrency exchanges, and illegal fintech innovations. Furthermore, AUSTRAC revealed that it is anticipating more increase in the use of cryptocurrency for illicit transactions.
More so, the agency explained that the virtual assets landscape keeps evolving which has led to the introduction of tools that offer anonymity and facilitate voluminous transfer. AUSTRAC opined that criminal utility for crypto will also increase if new legal use cases keep surfacing.
AUSTRAC added that with such efficiency, crypto and other digital assets will always be a tool in the hands of money launderers. The agency highlighted that in the next three (3) years, the vulnerability of crypto to illegal activities will be on the rise.
AUSTRAC Calls For Regulatory Compliance
To address this loophole, AUSTRAC called on all unregistered virtual assets service providers in the country to register with the agency under the AML/CTF act. Through the report, the agency emphasized the need for consistent compliance with regulatory measures.
Similarly, the government body also underscored the importance of international cooperation in battling the use of cryptocurrencies and other digital assets for money laundering. Meanwhile, despite the growing adoption of virtual assets, money launderers still prefer traditional means to illegally move funds.
According to AUSTRAC some of these channels are cash, luxurious goods, and real estate. However, in a bid to combat the growing use of crypto for fraudulent activities, the Australian government has banned the use of cryptocurrency and credit cards on online gambling sites.
To ensure strict compliance, the Aussie government attached a $155,000 fine to the ban. The stern fight against the use of crypto for illegal use emanated as part of the growing attention of the Australian government on virtual assets.
Recall Binbits reported that Australia is on the verge of passing its crypto bill. As per the report, the Senate indicated its willingness to approve the bill, however, the upper chamber told Andrew Bragg to make a few amendments to it.