The Australian Transaction Reports and Analysis Center (AUSTRAC) has warned cryptocurrency exchanges operating in Australia to maintain a good compliance level or face eviction. The Aussie regulator made the disclosure on Monday through an official statement.
The regulator issued the warning after rejecting applications for operational license renewal from six (6)cryptocurrency exchanges.
According to AUSTRAC, about thirteen (13) fintech companies alongside the exchanges no longer have authorization to operate in the country. While speaking about the crypto exchanges, the regulator explained how top executives of the firms have connections to serious offenses.
Further, AUSTRAC said the key personnel were either convicted or accused of critical offenses that affected their reputation as people of good integrity. Hence, the issue is one of the reasons that compelled AUSTRAC to revoke its licenses for the organizations.
However, the CEO of AUSTRAC, Brendan Thomas further explained the situation of the cryptocurrency exchanges. Thomas said the regulator placed conditions on the registration of two exchanges for not fulfilling their obligations before the deadline.
He warned that failure to meet requirements before the deadline may attract suspension or permanent withdrawal of their operational license. Likewise, the Aussie regulator described how it declined the application of three exchanges as they no longer function in the country.
In addition, FTX Express and Zipmex are no longer on Australia’s Digital Currency Exchange Register following their liquidation. Similarly, in the statement, AUSTRAC revealed that about fifty (50) companies are under investigation over compliance matters.
As revealed, the regulator explained how the companies have failed in recent times to report suspicious operations and transactions. Meanwhile, the regulator has sent notice to the companies currently under investigation.
AUSTRAC stated that the notice is a precursor to possible legal action against the companies for failing to report suspicious issues and money transfers.
AUSTRAC boss hints at introduction of more oversight actions
The CEO of AUSTRAC, Brendan Thomas in the statement discussed how analysis from the regulator discovered a huge non-reporting and under-reporting of suspicious transactions in the Fintech and crypto sector. More so, the CEO narrated how a previous investigation last year on non-compliant companies helped improve transaction reportage across the two industries.
Late last year, Thomas indicated that Australia may intensify its oversight activities on the cryptocurrency sector by 2025. In December 2024, the Aussie regulator introduced tough Anti-Money Laundering and Counter-Terrorism financing regulations to filter transactions in the cryptocurrency sector.
The development came in response to the growing number of Fintech and cryptocurrency companies in Australia. Also, during the month, Australia initiated a clampdown on Bitcoin ATMs, stating they might be a pathway to evade existing Anti-money laundering laws in the country.