Australia’s financial intelligence agency, AUSTRAC, is intensifying efforts to combat financial crime by targeting dormant cryptocurrency exchanges. The agency has identified a significant number of inactive registered crypto exchanges and is urging them to withdraw their registrations or risk cancellation. This move aims to prevent these dormant firms from being exploited by scammers who could use them to appear legitimate to unsuspecting users.

Currently, there are 427 digital currency exchanges registered with AUSTRAC. However, the agency said on April 29 that it suspects that many of these are no longer operational. AUSTRAC CEO Brendan Thomas emphasized that businesses must keep their details up to date, including information about services no longer provided. Firms that fail to demonstrate active operations will have their registrations canceled, and this information will be made public to help Australians identify legitimate providers.

Source: AUSTRAC

This initiative is part of a broader crackdown on non-compliant digital currency exchanges and remittance service providers. Earlier this year, AUSTRAC took action against 13 firms for failing to meet anti-money laundering and counter-terrorism financing obligations. The agency has also issued alerts to over 50 other firms, warning them of potential regulatory actions if they do not comply with reporting requirements.

In addition to targeting dormant exchanges, AUSTRAC is focusing on cryptocurrency ATM providers due to their potential use in money laundering activities. The agency has established a task force to ensure that crypto ATM operators meet minimum standards and comply with anti-money laundering laws. Operators are required to register with AUSTRAC, conduct transaction monitoring, implement know-your-customer checks, and report suspicious activities.

Through these measures, AUSTRAC aims to enhance the integrity of Australia's financial system and protect the community from serious and organized crime. The agency continues to monitor the digital currency sector closely and will take further action against non-compliant operators.