The Australian Transaction Reports and Analysis Centre (AUSTRAC) has identified cryptocurrency as a major risk for financial crime. This includes issues like money laundering and scams.
As a result, the government aims to regulate the crypto industry to protect consumers. AUSTRAC’s warning urges companies in the industry to comply with regulations to prevent the misuse of cryptocurrencies.
Australia Tightens Regulatory Grip
AUSTRAC’s decision to highlight crypto as a risk is not surprising. The agency has always monitored the industry closely due to concerns about illegal activities. Strict rules have been put in place to deter violators. The watchdog believes that cryptocurrencies pose a heightened risk for money laundering and is working to shut down non-compliant businesses.
Crypto ATM providers must meet money laundering obligations to reduce crime risks. The agency will strengthen anti-money laundering and counter-terrorism financing (AML/CTF) regulations and improve compliance among crypto exchanges and other related businesses.
The Australian government has proposed stricter AML/CTF rules for the crypto industry. The rules would require better checks on customers and more transparency for cross-border transactions. AUSTRAC’s goals this year include tightening these regulations and helping companies comply to prevent misuse of digital assets for illegal activities.
Measures to Curb Crypto Crime
Notably, while some companies thrive in Australia’s crypto market, authorities are cracking down on offenders. For example, Binance Australia faced action from the Australian Securities and Investments Commission (ASIC) for breaking regulations, and Kraken was fined $5.1 million for similar reasons.
The Australian Federal Police (AFP) is also collaborating with blockchain data platforms to identify and catch crypto scammers. For instance, in October 2024, the AFP seized A$9.3 million (equivalent to $6.4m) worth of cryptocurrencies belonging to Jay Je Yoon Jung, a 32-year-old Nawee man linked to a criminal messaging app.
As the rules change, many companies may have to adapt. Even with challenges, the crypto market continues to grow. While major cryptocurrencies have recently experienced a price surge, the Australian government still aims to keep consumers safe while addressing illegal activities in the crypto space.
