427 crypto exchanges registered in Australia, but regulators say most are inactive

Australian financial intelligence agency Austrac is calling for an unoperated digital currency exchange (DCE) to voluntarily withdraw registrations, warning that if they do not do so, it could lead to cancellations.

DCEs, including operating cryptocurrency ATMs, must register with Austrac to legally provide services to exchange cryptocurrency cash. Currently, 427 DCEs are registered, but the agency has expressed concern that a significant number of them appear inactive. Austrac has begun contacting companies that they believe are no longer traded.

Austrac CEO Brendan Thomas said inactive registrations could be exploited by criminals seeking to use dormant businesses for illegal activities. “Companies registered with Austrac should keep their details up to date, including details about services that are no longer offered,” Thomas said.

He added that maintaining an accurate register is essential to protect consumer trust and ensuring that only legitimate companies operate in the sector.

“Our intelligence shows that cryptocurrencies can be exploited by criminals for money laundering, fraud, and moneyrava activities, and it’s very common for them to be victims of fraud, including digital currencies,” Thomas said.

Use it or lose it

Austrac has the authority to cancel your registration if it determines that your business is not offering DCE services. Cancellations are published on the agency’s website. Thomas noted that if a business intends to resume operations, it could reapply for registration at any time.

Following that review, Austrac is planning to launch a public register, allowing consumers to see if a digital currency exchange is registered and under regulatory oversight. “

“We want to make sure the public is not misunderstood about the services that businesses are legally permitted to provide,” Thomas said.

Cryptofocus

In February, Austrac announced it was taking action against 13 remittance and digital currency exchange providers, investigating more than 50 additional companies.

Regulators imposed on detection, prevention and disruption of criminal activity within the financial system intervened after these platforms failed to properly report suspicious transactions.

Current enforcement efforts reflect decisions made late last year, with Austrac prioritizing crackdowns on cryptocurrency ATMs in 2024. The agency had flagged cryptocurrencies as bringing increased risks to money laundering, fraud and money mule operations.