Australia's financial regulator is going after inactive crypto companies still appearing on official lists

Australia’s financial regulator is going after inactive crypto companies still appearing on official lists.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) disclosed Tuesday that it would remove registrations from exchanges that have ceased trading but are still on their books.

The agency’s remarks come amid a broader crackdown on crypto firms operating in the country. AUSTRAC has also taken action against remittance providers and exchanges.

‘Use It Or Lose It’ Warning To Dormant Exchanges

AUSTRAC noticed that 427 cryptocurrency exchanges are registered in Australia but largely abandoned and still on the register.

Chief Executive Officer Brendan Thomas sounded a dire warning to these ghost operations. “We’re warning these businesses: use it or lose it,” he said. The agencies suspect criminals will purchase these idle businesses and utilize their current registrations.

Any transaction that exchanges money for crypto, such as ATM operators, are required to be registered with AUSTRAC by existing regulations. The agency monitors money laundering, terrorist financing, and tax evasion through these enterprises.

AUSTRAC warns inactive crypto exchanges to deregister or face cancellationAustralia’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…

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10 Registrations Already Cancelled Since 2019

AUSTRAC has not shied from stripping away approvals when the need arises. Ten companies have had their registrations canceled in the last five years, according to records. The latest was against FTX Express in June 2024, Australia’s arm of collapsed global crypto exchange FTX.

The cancellations demonstrate AUSTRAC’s authority to strike companies from their register when there is reasonable ground to suspect that they no longer exist or provide crypto services.

Public List Coming To Assist Australians Identify Genuine Providers

In an effort to safeguard consumers, AUSTRAC is set to release an official list of registered exchanges. This move will assist Australians in verifying whether a crypto service is genuine before risking their money.

“Members of the public should feel confident that they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight,” said Thomas. “We are driving criminals out of this industry.”

The list aims to improve trust in the crypto sector by making it easier to spot properly registered businesses.

Broader Crackdown Underway As Election Approaches

AUSTRAC’s targeting of ghost exchanges is part of its wider enforcement drive. In February, the regulator took action against more than a dozen remittance providers and exchanges. Sources indicate around 50 other businesses are under investigation for potential rule breaches.

Six providers were denied renewal of registration because major personnel had been convicted, charged, or prosecuted for major offenses.

This purge arrives as Australia continues to develop broader crypto regulations. The governing Labor Party initiated discussions with industry specialists on new regulations in August 2022. In March this year, the government put forward regulating exchanges under current financial legislation.

These moves to regulate are gaining heightened importance ahead of a federal election set for May 3, demonstrating how digital currency regulation has become a key political priority in Australia.

Featured image from Gemini Imagen, chart from TradingView