Fed Governor Adriana Kugler to resign
Australia's primary financial intelligence agency, the Australian Transaction (JO:TCPJ) Reports and Analysis Center (AUSTRAC), announced regulatory actions against numerous remittance service providers and cryptocurrency exchanges for potential non-compliance with the country's Anti-Money Laundering (AML) rules.
According to CoinTelegraph, AUSTRAC CEO Brendan Thomas revealed that the agency denied registration renewal for six providers after discovering that key personnel had serious criminal charges that impacted their perceived honesty or integrity.
The crackdown by AUSTRAC follows an analysis that uncovered systemic issues with reporting practices within the remittance and digital currency exchange sectors. Thomas noted that early in the previous year, AUSTRAC initiated investigations to identify and address non-compliant entities, aiming to enhance the industry's reporting on suspicious activities.
Furthermore, over 50 remittance providers and crypto exchanges received alerts from AUSTRAC, signaling potential upcoming regulatory actions. These alerts were issued due to concerns that the operators might not be adequately reporting suspicious matters and transactions.
Two providers faced additional conditions on their registrations for failing to meet necessary requirements before the set deadline, placing them at risk of suspension or cancellation should they fail to comply with the imposed conditions. Additionally, three entities that were refused registration are no longer operational in Australia.
In a related development, two crypto exchanges, FTX Australia subsidiary FTX Express and Zipmex Australia, were removed from the Australian Digital Currency Exchange Register after becoming insolvent. This move comes amidst increasing scrutiny of the cryptocurrency sector by Australian regulators.
AUSTRAC's efforts are part of a broader push to tighten oversight of the crypto industry, with the agency shifting its focus to cryptocurrency in anticipation of 2025. This shift includes a crackdown on crypto ATM providers suspected of violating AML laws. In December, AUSTRAC also proposed stricter AML and counter-terrorism financing rules to better regulate the crypto sector and prevent financial crimes.
The Australian Securities and Investment Commission has also taken steps to regulate the crypto industry, releasing a consultation paper in December that seeks to classify many digital assets as financial products, thereby requiring crypto firms to obtain appropriate licenses.
The regulatory landscape for digital currencies in Australia is evolving, with AUSTRAC and other agencies actively working to ensure compliance and mitigate risks associated with money laundering and terrorism financing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.