AUSTRAC Warns Inactive Crypto Exchanges of Deregistration

In a press release issued on April 28, AUSTRAC disclosed that 427 crypto exchanges are currently registered in Australia. However, the agency is actively contacting those who have ceased trading. It emphasized that businesses registered with AUSTRAC must keep their information current, particularly when discontinuing services.

“Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided,” the agency stated. It further warned that criminals increasingly use digital currencies for money laundering, scams, and money mule operations, with an alarming rise in scam-related victimization.

In light of these risks, AUSTRAC reiterated that all crypto exchanges and ATM operators must be registered before offering services involving cryptocurrency exchange for cash or vice versa. These platforms are seen as vulnerable to misuse, reinforcing the need for strict oversight.

AUSTRAC’s national manager of regulatory operations, Peter Thomas, underscored that cryptocurrency businesses operate within a “high-risk sector.” He cautioned that inactive entities still listed on the official register could be exploited by bad actors, as their status gives them a false sense of legitimacy. To address these vulnerabilities, AUSTRAC plans to cancel registrations of non-functioning crypto businesses and publicly disclose these cancellations on its website. Additionally, the agency will introduce a searchable online register to help users verify if a crypto exchange is properly licensed and regulated.

Further deepening its regulatory push, AUSTRAC voiced concerns over the growing risks associated with crypto ATMs. The agency criticized operators for failing to implement robust anti-money laundering (AML) and counter-terrorism financing (CTF) controls, warning that these lapses could further expose the financial system to criminal exploitation.

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter , LinkedIn , Facebook , Instagram , and CoinMarketCap Community .

“Take control of your crypto portfolio with Markets PRO, DeFi Planet’s suite of analytics tools.”