Australian Transaction Reports and Analysis Centre (AUSTRAC) is increasing its enforcement actions against non-compliance in Australia’s digital currency exchange sector after addressing issues with remittance services and crypto providers.
The agency has targeted 13 digital currency exchanges, with over 50 others under investigation for underreporting suspicious transactions and not fulfilling anti-money laundering obligations.
AUSTRAC CEO Brendan Thomas emphasized that the recent alerts serve as a precursor to potential regulatory actions, highlighting concerns over the failure of many operators to report critical data that could help disrupt criminal activities. In late 2024, AUSTRAC suspended or cancelled the registrations of 9 non-compliant crypto providers while placing additional conditions on two others. These stricter requirements are now tied to their continued operation.
Among the companies targeted were DIGI-SEND E-Money Pty Ltd and Rootie Technology Pty Ltd, both of which have ceased operations. Meanwhile, Zipmex and FTX Express were removed from the Digital Currency Exchange Register due to insolvency. AUSTRAC’s ongoing monitoring revealed systemic underreporting within the sector, prompting a significant push to hold providers accountable for their reporting obligations.
With 417 digital currency exchanges currently registered in Australia, AUSTRAC will issue reminders to 106 entities in 2024. The regulator continues to focus mainly on the crypto sector, which has been flagged for its heightened risks related to money laundering. AUSTRAC is collaborating closely with its Crypto Taskforce to enhance reporting practices and strengthen regulatory oversight in this rapidly evolving industry.
In addition to these efforts, Australia, the U.S. and the U.K. recently imposed sanctions on the Russia-based hosting provider Zservers and its U.K. affiliate, XHOST Internet Solutions, for allegedly facilitating cybercrime. The sanctions, announced on February 11, include asset freezes, travel bans, and financial restrictions, effectively isolating Zservers from the global financial system. Zservers is accused of providing “bulletproof” hosting services to the LockBit ransomware group, allowing cybercriminals to evade detection.
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