Australia’s financial intelligence agency is intensifying its oversight of cryptocurrency exchanges, cautioning that inactive platforms may face deregistration if they do not voluntarily withdraw.
In an April 30 press release, the Australian Transaction Reports and Analysis Centre (AUSTRAC) highlighted concerns that several registered digital currency exchange providers seem to have ceased operations yet remain listed, posing a potential risk for criminal exploitation.
AUSTRAC Starts Contacting Crypto Exchanges
AUSTRAC has begun reaching out to exchanges that appear inactive among the 427 currently registered businesses.
The agency emphasized that registered businesses must keep their information up to date, including details about discontinued services.
“Our intelligence indicates that cryptocurrency can be exploited by criminals for money laundering, scams, and money mule activities, with an alarming number of people falling victim to scams involving digital currency,” AUSTRAC stated.
Additionally, AUSTRAC underscored that all crypto exchanges and ATM providers must be officially registered before offering fiat-to-crypto conversion services, warning that inactive businesses pose a vulnerability that could 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, characterized the cryptocurrency sector as “high risk,” emphasizing that registration provides a level of legitimacy that could be exploited by bad actors if regulatory oversight weakens.
The agency cautioned that it may revoke registrations if there is sufficient reason to believe a business is no longer operational.
Furthermore, AUSTRAC announced plans to introduce a publicly accessible register, allowing consumers to check whether a crypto exchange is officially registered and subject to regulatory scrutiny.
ASIC Shuts Down 130 Scam Websites Weekly
EEarlier this month, the Australian Securities and Investments Commission (ASIC) announced the shutdown of 95 firms suspected of operating under false pretenses.
ASIC reported an escalation in enforcement efforts, dismantling an average of 130 scam websites per week.
To date, the agency has taken down over 10,000 malicious sites, including more than 7,200 fraudulent investment platforms and 1,500 phishing scams.
As part of a broader crackdown, ASIC also targeted crypto ATM operators who failed to comply with anti-money laundering regulations, following a surge in suspicious activity involving these machines.
Last month, the Australian Federal Police (AFP), the National Anti-Scam Centre (NASC), and Binance Australia issued alerts about a sophisticated fraud scheme designed to deceive victims into transferring their crypto assets through fake messages.
At the time, the AFP disclosed that more than 130 potential victims had been identified and notified as part of a proactive effort to combat the scam.
Fraudsters reportedly used SMS and encrypted messaging apps to impersonate Binance representatives, falsely claiming that victims’ accounts had been compromised.