Australia’s financial intelligence agency Austrak has been fined on a fined cointree, a Melbourne-based cryptocurrency exchange.
Austrac CEO Brendan Thomas said timely reporting is important to prevent financial crimes, and warns that non-compliant companies will be eligible. Even stricter execution.
The exchange is working to strengthen its internal compliance system after self-disclosing reporting errors.
Austrac strengthens rules governing Australia’s crypto industry
Reports from sources show that Australia’s trading reports and analysis centres took enforcement action after the cryptocurrency exchange disclosed a voluntarily disclosed delay by meeting its reporting obligations for money laundering.
Austrac said that Hampers Law Enforcement is capable of acting promptly on delay reports. New threats. Thomas highlighted the urgency, noting that deadlines are set to ensure timely responses, assess information if evidence of illegal activities is found, and give the agency time to alert partners.
Entities must be submitted Suspicious Issues Report (SMR) within 3 business days, if there is reasonable basis for a suspected money laundering or if terrorist financing is suspected.
However, Thomas acknowledged Cointree’s full cooperation and noted that the company self-reported the issue and acted to correct its system and management. He pointed out that the regulatory response could have been more serious without such cooperation.
The fines were part of Austrak’s broader efforts to crack down on Australia’s digital currency exchange sector, which at the time said “there is a risk of being exploited for criminal purposes.”
In 2024, Austrac said pseudonyms, global reach and transfer speeds are the top three risks the sector presents. Since then, more than 50 companies have been warned of potential violations, while 13 have been subject to enforcement action.
With a wider tuned movement to modernize Cryptocurrency The Australian government monitored across the digital asset industry space and last week appointed Andrew Charlton as aide to Science, Technology and Digital Economy.
Austrac is targeting dormant crypto exchanges due to crackdowns on preemptive fraud
Austrac previously revealed that it was closing its inactive cryptocurrency exchange to prevent fraudsters from scaming people. It called on registered exchanges to the Registrar to no longer be willing to operate or to halt the registration.
An agency spokesperson said that of the 427 DCEs registered with Austrac, about 25% may be out of operation. This comes after the spokesman revealed that he reviewed the DCE register to ensure that only real active digital currency exchange providers are listed as it is likely that criminals will use dormant businesses.
The agency said the initiative was launched ahead of a change in the country’s money laundering laws that will require Austrac’s registered cryptocurrency trading platform from March 31, 2026.
In the meantime, Austrac contacted cryptocurrency exchanges that it thought were not a trade. To ensure that they are purchased and not used by criminals, Thomas said on April 29 that dormant exchanges will be instructed to “use or lose it.”
He continued that companies registered with Austrac must keep information up to date, including details that have no services available. Additionally, companies that include cryptocurrency ATM providers who want to provide Australians with cash-to-crypto conversion must first register with their agency.
In the face of rising financial crimes, Austrak is working to strengthen Australia’s crypto sector, monitoring crimes such as tax evasion, money laundering and terrorist financing.
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