Melbourne-based cryptocurrency exchange Cointree has been fined AUD $75,120 by Australia’s financial watchdog for failing to file suspicious matter reports (SMRs) within legally required timeframes. The penalty was issued by the Australian Transaction Reports and Analysis Centre (AUSTRAC), which cited the exchange’s delayed reporting as a barrier to timely law enforcement intervention.
The enforcement action follows Cointree’s voluntary disclosure of the compliance failures—an admission AUSTRAC acknowledged in its statement on Thursday. While self-reporting helped reduce the severity of the penalty, the agency underscored the seriousness of the breach.
SMRs are a critical component of Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) framework. Regulated firms like Cointree are required to flag and report any transactions that raise red flags related to illicit finance.
AUSTRAC noted that delays in these filings can significantly impair authorities’ ability to respond quickly to potential threats, particularly in an environment where crypto-related financial crime continues to evolve at a rapid pace.
“We need to action these reports as soon as possible, which is why the timeframes are put in place—they allow us to move with pace and alert our partners to suspected criminal conduct,” AUSTRAC CEO Brendan Thomas said in the statement.
AUSTRAC Escalates Oversight of Crypto Exchanges
The penalty against Cointree is the latest move in AUSTRAC’s widening campaign to strengthen oversight of Australia’s digital currency exchange (DCE) sector, which the agency views as increasingly susceptible to exploitation by criminal networks.
Since early 2024, AUSTRAC has flagged several core risks in the crypto space—chief among them the pseudonymous nature of transactions, the borderless nature of digital assets, and the speed at which funds can move across wallets and jurisdictions. In response, the regulator has initiated enforcement actions against 13 crypto businesses and issued warnings to over 50 others citing potential compliance shortcomings.
In its latest warning, AUSTRAC addressed dormant exchange registrations, urging inactive platforms to either resume operations or voluntarily exit the market.
“Use it or lose it,” the agency warned, signaling a more aggressive stance on regulatory housekeeping.
A publicly accessible registry of licensed digital currency providers is expected to launch soon, aiming to bring greater transparency to the sector.
Australia Signals Policy Shift as Oversight Tightens
The regulatory tightening coincides with a broader shift in national policy. Just last week, the Australian government appointed Andrew Charlton as Assistant Minister for Science, Technology, and the Digital Economy—a move widely interpreted as a sign that Canberra is preparing to modernize crypto legislation and assert more structured oversight of the digital asset ecosystem.
The appointment has been welcomed by policy analysts who see it as a step toward aligning Australia’s crypto framework with international standards, particularly in areas like investor protection, AML compliance, and consumer transparency.
Following its disclosure, Cointree has taken proactive steps to remediate its internal systems and controls to prevent future delays. AUSTRAC acknowledged the exchange’s cooperation, noting that without such transparency, the regulatory response could have been more severe.
Cointree has also committed to continuing its engagement with AUSTRAC to ensure its processes meet evolving compliance expectations across the digital asset sector.
Quick Facts
- Cointree was fined AUD $75,120 by AUSTRAC for failing to submit suspicious matter reports on time, despite self-disclosing the violation.
- SMRs are essential to Australia’s AML/CTF regime and help law enforcement respond swiftly to financial crime risks.
- AUSTRAC has taken action against 13 crypto firms and warned over 50 others as part of a wider compliance crackdown in 2024–2025.
- The Australian government’s appointment of a new digital economy minister suggests further crypto legislation updates are on the horizon.
