AUSTRAC ‘Slams’ Inactive Crypto Exchanges: Warning of Deregistration if Non-Compliance

The Australian Transaction Reports and Analysis Authority (AUSTRAC) is stepping up its crackdown on inactive cryptocurrency exchanges, issuing a “use or lose registration” ultimatum as part of its strategy to protect consumers and prevent illegal activity involving digital assets.

In a press release published on Monday, AUSTRAC said it is actively contacting suspected inactive digital currency exchanges (DCEs), asking them to voluntarily withdraw their registrations or face deregistration. The aim is to clean up the growing digital asset ecosystem of inactive entities.

“Our intelligence shows that cryptocurrencies are being used by criminals for money laundering, fraud and asset misappropriation. We cannot allow this to continue,” said AUSTRAC CEO Brendan Thomas.

There are currently around 427 registered DCEs in Australia, but AUSTRAC believes a significant proportion of them have ceased operations. Names such as FTX Express Pty Ltd, AccE Australia Pty Ltd and Oaks Payments Pty Ltd have been deregistered in recent times due to insolvency or inability to operate.

AUSTRAC said it would publish a list of deregistered exchanges and open an online register to make it easier for people to verify the identity of legitimate providers. “Consumers need to know who they are dealing with. It is time to remove opportunists from the industry,” added Thomas.

This “clean-up” is not a one-off action. In February, AUSTRAC took disciplinary action against 13 cryptocurrency companies and is monitoring more than 50 others for serious breaches of anti-money laundering and counter-terrorism financing regulations.

This is becoming increasingly heated as Australia heads to the general election on May 3. Digital asset regulation is seen as a key campaign issue. Global exchange Coinbase recently publicly called on Australian voters to support candidates who push for clearer regulatory frameworks for cryptocurrencies, criticizing the current policy landscape as “vague and outdated.”

While AUSTRAC has said that deregistered exchanges can still re-register if circumstances change, the message remains clear: operate transparently or get out of the game.