Australian Exchange Cointree Fined for Late Reporting of Suspicious Activity: AUSTRAC Tightens Cryptocurrency Oversight

Melbourne, Australia – May 2025 – The Australian Financial Intelligence Authority (AUSTRAC) has fined cryptocurrency exchange Cointree $75,120 for failing to file suspicious activity reports (SMRs) on time, as part of a broader crackdown on Australia’s rapidly growing cryptocurrency sector.

According to an official statement from AUSTRAC, the enforcement action was taken after Cointree voluntarily disclosed errors in the timely filing of SMRs – mandatory reports for financial institutions and digital services when they suspect a transaction is linked to money laundering, terrorist financing or other criminal activity.

“We need to act on reports as soon as possible. That’s why the timeframes are set – so that authorities can react quickly and alert partners to emerging risks,” AUSTRAC CEO Brendan Thomas said.

Under the rules, organisations must submit SMRs within three business days of detecting signs of money laundering, or 24 hours in the case of suspected terrorist financing.

Cointree cooperates but is still fined
AUSTRAC noted that Cointree had cooperated fully, proactively disclosed the deficiencies and was implementing measures to improve its internal compliance systems. However, the agency said the penalty was still necessary to ensure deterrence and transparency across the industry.

“Without proactive cooperation from the business, the legal consequences could have been more severe,” AUSTRAC noted.

A Cointree representative has not yet commented on the penalty decision.

AUSTRAC increases oversight across the industry
This is part of a broader effort to expand oversight and enforcement of digital asset trading platforms in Australia. Over the past year, AUSTRAC has taken action against 13 cryptocurrency exchanges and issued warnings to more than 50 entities about potential compliance risks.

Factors such as anonymity, fast transaction speeds and cross-border capabilities are seen as weaknesses that criminal organisations could exploit. AUSTRAC has also issued warnings to cryptocurrency ATM operators after detecting signs of fraud and money laundering.

A public database of licensed digital currency providers is also being prepared to help users and authorities keep a closer eye on industry activity.

Efforts to modernize the regulatory framework
In this context, the Australian government recently appointed Andrew Charlton as Assistant Minister for Science, Technology and the Digital Economy, with a mandate to modernize cryptocurrency regulation and strengthen oversight of digital assets.

The Cointree fine is a testament to AUSTRAC’s commitment to maintaining transparency, safety and compliance in the cryptocurrency sector – which has increasingly attracted the attention of both investors and financial criminals globally.