Australian Regulator AUSTRAC Reviews 50 Crypto Service Providers, Takes Action Against 13

Australian regulators or the Australian Transaction Reports and Analysis Centre (AUSTRAC) has cracked down on over 50 cryptocurrency exchanges to enforce compliance with anti-money laundering (AML) and counter-terrorism financing (CTF). 

On 17 February 2025, the AUSTRAC released a press statement revealing that the agency has taken “action against 13 remittance and digital currency exchange providers with more than 50 others still in its sights.”

Commenting on the crackdown, AUSTRAC CEO Brendan Thomas said, “Early last year we initiated an investigation to identify and eliminate non-compliant providers and improve the industry’s reporting on suspicious matters.”

Furthermore, he said that alerts are a precursor to potential regulatory action and identify AUSTRAC’s concerns that operators may not be reporting suspicious matters and transactions to AUSTRAC.

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Last Year, AUSTRAC Suspended 9 Licenses For Failing AML, CTF Compliance

🚨 Aussie watchdog is on the hunt! 🇦🇺🔍 AUSTRAC just sent warnings to 50+ crypto exchanges & remittance services for non-compliance. Fail to fix it? Say goodbye to your registration! 😬⏳ #CryptoRegulation #AUSTRAC pic.twitter.com/nmJr9HM1Mb

— Crypto Aiden (@AidenBlok) February 17, 2025

While expressing concerns about money laundering risks, Thomas said that, “AUSTRAC’s reporting entities are the front line of defence in detecting criminal activity, which is why it is important for all of them to take their AML/CTF obligations seriously.”

In 2024, nine providers had their registrations cancelled due to non-compliance. Meanwhile, two crypto service providers were placed under strict conditions, with AUSTRAC warning that further violations could lead to termination.

“Late last year AUSTRAC cancelled, suspended and refused renewals of registration for 9 providers that had failed to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act,” confirmed Thomas.

Several executives from companies such as Auaisa Trading, Amco Travelling and Exchange, and B-Paywize are facing legal charges for failing to meet regulatory standards.

AUSTRAC currently regulates 417 registered cryptocurrency exchanges in Australia. In addition to its crackdown on non-compliant providers, the regulator has issued compliance reminders to 106 companies since January 2025.

“Businesses working in this space who are not meeting their obligations can expect to hear from us,” Thomas warned. 

Federal Court Fines Kraken’s Australian Operator $5.1 Million

Australia’s Federal Court has imposed an Australia crypto fine of $5.1 million AUD on Bit Trade, the operator of the cryptocurrency exchange Kraken. The court sided with the Australian Securities and Investments Commission (ASIC), which had accused Bit Trade of failing to comply with legal obligations regarding financial product design and distribution.

The judgment, delivered on 12 December 2024, was a result of Bit Trade’s actions regarding its margin extension product, which allowed users to trade cryptocurrencies or fiat with leverage.

Bit Trade’s product was offered without the legally required target market determination (TMD), a vital component designed to ensure that products are marketed to appropriate consumers.

Justice John Nicholas ruled that Bit Trade had acted as a credit facility without the necessary license.

Explore: Australia’s Federal Court Fines Kraken’s Australian Operator $5.1 Million