The Australian Transaction Reports and Analysis Centre (AUSTRAC), has threatened inactive Digital Currency Exchange (DCE) in the region to either use their exchange or lose it. The regulator made this development known through a media release on its website on Tuesday.
According to the Australian regulator, the region currently has 427 registered DCEs with a larger percentage of them being inactive. As a result of this, the watchdog is reaching out to DCEs that seem to have ceased trading.
In the release, the regulator urged these inactive exchanges to voluntarily withdraw their registration or risk their cancellation by authorities. The regulator added that all DCEs must be registered before they can offer service to exchange cash for cryptocurrency or vice versa. In addition, all cryptocurrency ATM providers must also be registered.
Brendan Thomas, the CEO of the Australian regulator shares more insight
Meanwhile, the Australian Transaction Reports and Analysis Centre (AUSTRAC) CEO, Brendan Thomas has reacted to the development. Thomas emphasized the risks associated with providing cryptocurrency exchange services, stating that the Australian regulator mitigates these risks through registration. He added that upon failure to register, inactive businesses become susceptible to being bought and operated by criminals.
The exec added that businesses registered with the regulator are expected to update their details including information about services they ceased to provide. He added that the regulator also aim to protect consumers’ faith in its registration while limiting the potential of improper sale and use of DCE businesses.
Thomas further emphasized the dangers associated with cryptocurrencies, noting that they can be exploited by criminals for money laundering, scams, and money mule activities. He highlighted the regulator’s plans to reduce this harm to its community.
According to him, the plans includes implementation of measures that makes it difficult for criminals to launder their money. He added that these measures will also improve the integrity and accuracy of AUSTRAC register. The CEO also encouraged businesses to either utilize this opportunity to register their businesses or lose it.
He added that regulator intends to establish a DCE register that will be accessible to the public, enabling customers and the public to check the registration status of a DCE. Thomas added that the public would not be misled about the services businesses are legally allowed to provide.
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