The Australian financial intelligence agency has said the inactive crypto exchange to withdraw their registrations or risk to cancel them to fears that dormant companies can be used for scams.
There are current 427 Crypto exchange registered with the Australian Transaction Reports and Analysis Center (Austrac), but the agency Says On April 29 it suspects a significant number is inactive and possibly vulnerable to buying and co-opted by criminals.
The agency is in contact with any so-called digital currency exchange (DCES) that appears to be no longer trading, and Austrac CEO Brendan Thomas says they will say “use it or lose it.”
“Businesses registered in Austrac are required to maintain their details to the present; it includes details about services that have not been provided,” he added.
Businesses that want to offer Australian changes between cash and crypto, including crypto ATM providers, must first register in Austrac, which is monitored for crimes including money laundering, terrorism financing and tax prevention.
The agency can cancel a registration if it has reasonable basis to believe that the business is no longer active or offers crypto-related services.
Ten companies have canceled their registration in Austrac since 2019, with the latest FTX Express in June 2024, the local subsidiary of the collapsed Crypto Exchange FTX.
Austrac to launch public list of registered exchanges
Following its Blitz on the inactive crypto exchange, Austrac said it would publish a list of registered exchanges to help Australians prove legitimate providers.
Thomas said the goal is to make it more difficult for criminals to scam into people and improve the integrity and accuracy of the Austrac register.
“If a DCE aims to offer a service, they will need to contact us otherwise, we cancel the registration and this information will be added to the register,” he said.
“Public members should be confident that they can identify legitimate cryptocurrency providers who have registered and subject to regulatory administration and that we are driving criminals in this industry,” Thomas added.
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In February, the anti-money laundering regulator acted against 13 remittance service providers and crypto exchanges, with more than 50 others investigating possible compliance issues.
Six providers denied registration registration on the basis that the main characters were convicted, accused, or charged with a serious offense.
Australia has not yet passed the crypto regulations. In August 2022, the ruling Left Labor Party began a series of industry consultations to draft a crypto regulation framework.
In March, the government suggested a new crypto framework that controls the exchanges under existing financial service laws before a federal election completed for May 3.
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