Australia’s Watchdog to Crack Down on Inactive Crypto Exchanges

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Australia’s financial intelligence agency has advised inactive registered crypto exchanges to withdraw their registrations or face cancellation, due to concerns these dormant firms could facilitate scams.

Currently, 427 crypto exchanges are registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). However, the agency announced on April 29 that it suspects many are inactive and at risk of being exploited by criminals.

AUSTRAC is reaching out to digital currency exchanges (DCEs) that appear inactive, with CEO Brendan Thomas stating they’ll be instructed to “use it or lose it.” He added that businesses registered with AUSTRAC must keep their information current, including services no longer offered.

Any business wishing to provide cash-to-crypto conversions in Australia, including crypto ATM providers, must first register with AUSTRAC, which oversees activities to prevent money laundering, terror financing, and tax evasion.