Australia’s financial intelligence agency, AUSTRAC, has announced plans to enhance its oversight of the cryptocurrency industry, focusing on digital currency exchanges (DCEs) and crypto asset automated teller machines (ATMs).
In a statement released on December 6, AUSTRAC confirmed it would ramp up inspections and review operations throughout 2025. The move highlights the agency’s growing concern over criminal entities’ use of crypto ATMs, citing their accessibility and digital currency transactions’ rapid, irreversible nature.
AUSTRAC currently monitors approximately 1,200 crypto ATMs across the country. It also oversees the operations of around 400 registered digital exchanges. These platforms must meet the provisions prescribed under the Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006. They add that any local DCE or crypto ATM operator has to be registered with AUSTRAC and strictly follow such regulations.
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Enhanced Compliance Measures and Penalties for Noncompliance
Under these regulations, crypto operators must implement transaction monitoring, conduct know-your-customer (KYC) checks, and report any suspicious activities. Further, any business entity needs to declare transactions greater than A$10,000.
Noncompliance with these legal requirements may lead to severe monetary or other sanctions. AUSTRAC has declared that it will develop a unique team specialized in identifying the non-compliant operations that facilitate immediate action on them.
According to AUSTRAC’s Chief Executive Officer, Brendan Thomas, the agency targets to deter unlawful activities, including money laundering and scammers. The idea is to ensure that crypto infrastructure is not used for money laundering or defrauding people into sending Wolves their money.
The Australian Securities and Investments Commission (ASIC) is also changing its approach to digital assets. In a recent consultation paper, ASIC put forward changes to its guidance under the Corporations Act. The revised Information Sheet 225 (INFO 225) includes 13 new examples to clarify the classification of certain digital assets as financial products. These updates cover a variety of digital assets, including stablecoins, wrapped tokens, staking services, and tokenized assets.
The regulatory changes signal a more comprehensive and structured approach to cryptocurrency oversight in Australia. AUSTRAC and ASIC aim to provide greater clarity and security for investors while safeguarding the financial system against potential misuse of digital assets.
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Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.