Australia’s financial intelligence agency is intensifying its scrutiny of cryptocurrency exchanges, emphasizing that platforms that are inactive could face deregistration unless they opt for voluntary withdrawal.
In a press release issued on April 30, the Australian Transaction Reports and Analysis Centre (AUSTRAC) highlighted that several registered digital currency exchange operators appear to have halted their activities while still remaining on the official list, thereby posing a risk of criminal exploitation.
AUSTRAC Begins Outreach to Crypto Exchanges
AUSTRAC disclosed that it has commenced outreach to exchanges that seem to no longer be operational among the 427 registered businesses.
“Businesses registered with AUSTRAC are mandated to keep their information current, which includes updates on services that are no longer offered,” the agency stated.
“Intelligence indicates that cryptocurrency can be misused by criminals for activities such as money laundering, scams, and using money mules, and we have observed a concerning number of individuals falling prey to scams related to digital currency.”
The agency reinforced that all exchanges and cryptocurrency ATM providers must maintain official registration before they can offer services related to fiat-crypto conversions, warning that dormant businesses present vulnerabilities that might be exploited.
AUSTRAC warns inactive crypto exchanges to deregister or face cancellation
Australia’s anti-money laundering regulator, @AUSTRAC, has warned inactive cryptocurrency exchanges, including FTX Express and AccE Australia, that their registrations will be canceled unless they…
— CoinNess Global (@CoinnessGL) April 29, 2025
Nicole Thomas, AUSTRAC’s national manager for regulatory operations, referred to the cryptocurrency sector as “high risk,” noting that a formal registration provides a degree of legitimacy that could be exploited by ill-intentioned actors if oversight fails.
The agency cautioned that it may proceed to cancel registrations if there are legitimate grounds to suspect that a business is no longer functional.
Moreover, AUSTRAC announced plans to introduce a publicly accessible register, allowing consumers to verify whether a crypto exchange is properly registered and subject to regulatory oversight.
ASIC’s Ongoing Battle Against Scams
Earlier this month, the Australian Securities and Investments Commission (ASIC) reported the dismantling of 95 firms believed to be acting deceitfully.
ASIC has ramped up its enforcement efforts, shutting down an average of 130 scam websites weekly.
To this date, the agency has disabled over 10,000 malicious websites, which include more than 7,200 fraudulent investment platforms and about 1,500 phishing scams.
In an associated crackdown, ASIC recently targeted operators of cryptocurrency ATMs that had failed to comply with anti-money laundering regulations amid a noted increase in suspicious activities linked to these machines.
Last month, the Australian Federal Police (AFP), together with the National Anti-Scam Centre (NASC) and Binance Australia, issued alerts to potential victims about an elaborate fraud scheme involving deceptive messages that trick users into transferring their cryptocurrency assets.
At that time, the AFP revealed that over 130 possible victims had been informed as a part of a proactive response to the scam.
Fraudsters were reported to have utilized SMS and encrypted messaging platforms to impersonate Binance representatives, falsely asserting that the victims’ accounts had been compromised.
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