Basri Caneri 
AUSTRAC, Australia’s financial crime prevention agency, has launched a large-scale audit operation of cryptocurrency exchanges and money transfer providers. The agency has sent warnings to more than 50 providers on the grounds that certain operators failed to report suspicious transactions.
AUSTRAC CEO Brendan Thomas said in a statement that six companies were denied registration renewal requests because company officials had been convicted, tried or charged with serious crimes. It was pointed out that companies linked to these individuals pose a risk to the financial system.
Increasing Pressure on Crypto and the Financial Sector
The inspections found that both companies failed to meet the necessary regulatory requirements. It was reported that if these companies do not meet the requirements, their licenses may be suspended or revoked. In addition, bankrupt exchanges such as FTX Australia and Zipmex Australia have been removed from the country’s Digital Currency Exchange Registry.
There are 417 registered cryptocurrency exchanges and 5,112 money transfer service providers in Australia. The government is preparing to impose stricter regulations on the crypto sector in the fight against money laundering and terrorist financing.
Crypto ATMs on the Radar
AUSTRAC has increased its inspections, especially of Bitcoin ATMs, stating that cryptocurrency ATM providers may be conducting illegal transactions. Australia is the third largest market in the world with 1,453 crypto ATMs.
In December, the Australian Securities and Investments Commission (ASIC) also released a consultation report on the classification of crypto assets as financial products and the introduction of licensing requirements. These developments suggest that tighter regulatory frameworks are on the way for the future of the crypto sector in the country.
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