AUSTRAC Threatens Inactive Digital Currency Exchanges (DCEs) to Either Use Their Exchange or Lose It

The Australian Transaction Reports and Analysis Centre (AUSTRAC), has threatened inactive Digital Currency Exchange (DCE) in the region to either use their exchange or lose it.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has threatened inactive Digital Currency Exchange (DCE) in the region to either use their exchange or lose it. The regulator made this development known through a media release on its website on Tuesday.

According to the Australian regulator, the region currently has 427 registered DCEs with a larger percentage of them being inactive. As a result of this, the watchdog is reaching out to DCEs that seem to have ceased trading.

In the release, the regulator urged these inactive exchanges to voluntarily withdraw their registration or risk their cancellation by authorities. The regulator added that all DCEs must be registered before they can offer service to exchange cash for cryptocurrency or vice versa. In addition, all cryptocurrency ATM providers must also be registered.

The Australian regulator's CEO, Brendan Thomas, has highlighted the significance of registration in mitigating the risks associated with providing cryptocurrency exchange services.

Upon failure to register, inactive businesses become susceptible to being bought and operated by criminals, while businesses registered with the regulator are expected to update their details including information about services they ceased to provide.

This move by the regulator is also aimed at protecting consumers’ faith in its registration while limiting the potential of improper sale and use of DCE businesses.

Thomas further emphasized the dangers associated with cryptocurrencies, noting that they can be exploited by criminals for money laundering, scams, and money mule activities.

The regulator's plans to reduce this harm to its community includes implementation of measures that makes it difficult for criminals to launder their money.

These measures will also improve the integrity and accuracy of the AUSTRAC register. The CEO encouraged businesses to either utilize this opportunity to register their businesses or lose it.

He added that regulator intends to establish a DCE register that will be accessible to the public, enabling customers and the public to check the registration status of a DCE. The public would not be misled about the services businesses are legally allowed to provide.