Australia’s financial intelligence agency, AUSTRAC, has launched a major crackdown on dormant cryptocurrency exchanges, warning inactive businesses to voluntarily deregister or face forced cancellation.
The move, announced Monday, is part of an intensified effort to protect consumers and prevent the criminal misuse of licensed but non-operational platforms.
AUSTRAC said it has directly contacted digital currency exchanges (DCEs) that appear inactive, encouraging them to formally withdraw their registrations. Should these businesses fail to act, AUSTRAC confirmed it will move unilaterally to cancel their licenses.
Brendan Thomas, CEO of AUSTRAC, highlighted the risks dormant firms pose.
“Inactive entities present a high risk of being co-opted by criminals who seek to leverage their registered legitimacy for illicit purposes,” Thomas stated.
He warned that scams, money laundering, and “money mule” operations often exploit weak points in the digital currency ecosystem.
AUSTRAC Plans Public Registry for Verified Crypto Providers
As part of its strategy, AUSTRAC plans to create a public registry where consumers can verify the legitimacy of registered, compliant crypto businesses.
The agency disclosed that out of 427 registered DCEs in Australia, a significant portion appear dormant or non-operational.
Thomas emphasized that trust and transparency are essential for the sector’s future:
“Members of the public should feel confident they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight,” he said.
Several exchanges — including FTX Express Pty Ltd, AccE Australia Pty Ltd, and Oaks Payments Pty Ltd — have already had their licenses revoked due to inactivity or insolvency, reinforcing AUSTRAC’s commitment to tougher enforcement.
Broader Crypto Crackdown Intensifies Ahead of Election
The dormant exchange sweep comes amid AUSTRAC’s wider enforcement blitz across the crypto sector.
Earlier this year, the regulator took action against 13 crypto businesses for failures related to anti-money laundering (AML) compliance and flagged over 50 more firms currently under active investigation.
The crackdown also coincides with Australia’s upcoming national election on May 3. Crypto regulation has increasingly become a political flashpoint, with candidates divided over how to balance innovation against consumer protection.
Global crypto exchange Coinbase recently weighed in, urging Australians to support candidates backing clearer digital asset laws. The company criticized Australia’s current crypto framework as “frustratingly vague,” adding fuel to the growing regulatory debate.
Global Regulatory Trends Mirror Australia’s Tougher Stance
Australia’s actions reflect a global pattern where authorities are tightening oversight of the cryptocurrency sector.
In the United States, the SEC and CFTC have stepped up scrutiny of exchanges, while the European Union’s MiCA regulations are reshaping the regulatory landscape across Europe.
As countries race to establish standards, dormant or non-compliant crypto businesses are increasingly under the microscope.
AUSTRAC’s push to purge inactive exchanges aligns Australia more closely with international efforts to foster a safer and more transparent digital asset market.
Quick Facts
- AUSTRAC is targeting inactive cryptocurrency exchanges for deregistration to prevent potential misuse.
- The agency plans to create a public registry for verified crypto providers.
- Australia’s broader crackdown follows enforcement against 13 crypto firms for compliance failures.
- Crypto regulation has emerged as a key political issue ahead of Australia’s May 3 national election.
