Key Takeaways
- As part of the regulatory effort, AUSTRAC is also preparing to launch a publicly searchable register of DCEs.
- The agency called on inactive digital currency exchanges to voluntarily cancel their registrations or risk being removed from the national registry.
Australia’s financial intelligence agency, AUSTRAC, has initiated a regulatory push targeting digital currency exchanges (DCEs) it believes are no longer operational. In an official statement, the agency called on inactive digital currency exchanges to voluntarily cancel their registrations or risk being removed from the national registry.
Under Australian law, DCEs — including those operating crypt ATMs — must be registered with AUSTRAC to legally provide services that exchange fiat currency for cryptocurrency and vice versa. As of April 2025, 427 DCEs are registered, but AUSTRAC suspects a notable portion of these are inactive or no longer offering services.
The regulator has begun contacting businesses it believes are no longer trading and warned that failure to respond or update their registration status could result in cancellation. This move comes in response to intelligence indicating that dormant or inactive DCEs pose a heightened risk of misuse by criminal groups.
Inactive businesses, while still carrying the legitimacy of AUSTRAC registration, may be exploited for activities such as money laundering, fraud, and other illicit financial operations.
AUSTRAC CEO Brendan Thomas stated that the agency’s efforts are aimed at maintaining the integrity of the digital currency sector and safeguarding the public. “Our intelligence shows cryptocurrency can be exploited by criminals for money laundering, scams, and money mule activities, and we’re seeing far too many people falling victim to scams involving digital currency,” Thomas said.
Thomas added that maintaining an accurate and up-to-date registry is critical to ensuring that only legitimate operators are active in the market. He emphasized that any business intending to resume services in the future would be allowed to reapply for registration.
As part of the regulatory effort, AUSTRAC is also preparing to launch a publicly searchable register of DCEs. This tool will allow consumers to verify whether a digital currency exchange is registered and under the agency’s oversight. The move is designed to promote transparency and help users identify legitimate service providers.
AUSTRAC’s actions follow a year-long investigation into compliance failures within the crypto and remittance sector. In February 2025, the agency took regulatory action against 13 DCEs and flagged over 50 additional firms for further scrutiny.
Several companies have already had their registrations cancelled in recent years due to inactivity or insolvency, including FTX Express Pty Ltd, AccE Australia Pty Ltd, and Oaks Payments Pty Ltd.
AUSTRAC reiterated that it has legal authority to cancel registrations if it has reasonable grounds to believe that a business is no longer offering DCE services. The watchdog states that the move is part of its broader strategy to reduce the risk of criminal misuse of digital asset platforms and maintain the credibility of Australia’s regulated crypto sector
