AUSTRAC Cracks Down on Non-Compliant Crypto and Remittance Providers

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has intensified its scrutiny of remittance and digital currency exchange providers, taking action against 13 entities and signaling further regulatory measures for over 50 others.

This comes after a year-long campaign targeting non-reporting and under-reporting, with AUSTRAC issuing alerts to potentially non-compliant operators. "These alerts are a precursor to potential regulatory action and identify AUSTRAC's concerns that operators may not be reporting suspicious matters and transactions to AUSTRAC," said AUSTRAC CEO Brendan Thomas.

The regulatory actions taken include convictions, prosecutions, or charges against key personnel at Auaisa Trading Pty Ltd, Amco Travelling and Exchange Pty, Blue Star Exchange Pty Ltd, B-Paywize Pty Ltd, W Solution Group Pty Ltd, and TSS Farms & Group Pty Ltd, related to management practices that reflected adversely on their honesty or integrity.

DIGI-SEND E-Money Pty Ltd, Rootie Technology Pty Ltd, and Jinte Net Blockchain Pty Ltd ceased operations requiring registration. Currencyfair Australia Pty Ltd and Currencyfair Limited, while now registered, failed to meet initial registration requirements.

Additionally, Zipmex Australia Pty Ltd and FTX Express Pty Ltd were removed from the Digital Currency Exchange Register due to insolvency. AUSTRAC's records currently list 417 digital currency exchanges and 5,112 remittance registrations across Australia. Since January 2024, the regulator has issued obligation reminders to 106 entities across various sectors, warning of further action for continued non-compliance. AUSTRAC reiterated its concern regarding money laundering risks within the digital currency exchange sector and will continue to address these concerns through its Crypto Taskforce and broader regulatory functions.