Brendan Thomas, CEO of the Australian Transaction Reports and Analysis Centre (AUSTRAC), announced that the agency is intensifying its enforcement actions against cryptocurrency exchanges that fail to comply with anti-money laundering (AML) regulations. This statement was made in a press release dated February 17.
"Late last year AUSTRAC cancelled, suspended and refused renewals of registration for 9 providers that had failed to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act," said Thomas. "Early last year we initiated an investigation to identify and eliminate non-compliant providers and improve the industry's reporting on suspicious matters. The blitz follows AUSTRAC's analysis that identified systemic non-reporting and under-reporting in the remittance and digital currency exchange sectors. Businesses working in this space who are not meeting their obligations can expect to hear from us."
According to the press release, AUSTRAC's enforcement actions against remittance and digital currency exchanges are the result of a year-long investigation into non-compliance with AML laws. Zipmex Australia and FTX Express were removed from the Digital Currency Exchange Register due to insolvency, while Currencyfair Australia and Currencyfair Limited were placed under conditional registration for not meeting regulatory requirements on time. AUSTRAC identified under-reporting of suspicious transactions as a significant issue and said that digital currency exchanges play a role in financial crime detection. With over 50 businesses under review, AUSTRAC indicated further regulatory actions may follow.
According to The Australian, the Australian Securities and Investments Commission (ASIC) has proposed new regulations requiring cryptocurrency companies to obtain an Australian Financial Services Licence (AFSL) or justify why they should be exempt. The proposal has raised concerns within the industry. Swyftx CEO Jason Titman warned that the new obligations, including the requirement to issue an audited prospectus and regulate exchanges like traditional financial markets, could have "far-reaching implications" and lead to industry consolidation. Binance’s head of regional markets, Vishal Sacheendran, mentioned the need for "clear and proportionate regulation" that balances innovation with consumer protection.
Thomas began his five-year term as CEO of AUSTRAC on January 29, 2024. As head of Australia’s financial intelligence unit and AML/Counter-Terrorism Financing (CTF) regulator, he focuses on strengthening the financial sector against criminal activity while supporting national security and law enforcement efforts.
Established in 1989 under the Financial Transaction Reports Act 1988, AUSTRAC serves as Australia’s financial intelligence agency and regulator. The agency monitors financial transactions to detect and combat money laundering, organized crime, tax evasion, welfare fraud, and terrorism financing.