Australia Cancels 45 Crypto and Remittance Registrations Over Past Year Amid Heightened Scrutiny
Australia’s financial intelligence body, AUSTRAC, has canceled, suspended, or refused to renew 45 registrations of crypto and remittance service providers over the past year. The actions targeted businesses that were inactive, insolvent, non-compliant or posed significant risks for money laundering and terrorism financing, reflecting increased regulatory scrutiny in the high-risk payments sector.
Reasons Behind Registration Cancellations
AUSTRAC identified several reasons for the cancellation or suspension of registrations: providers that were inactive, insolvent, lacked operational capacity, failed to report material changes, or had improper registrations were targeted.
The regulator emphasized significant concerns related to money laundering and terrorism financing risks, which underpinned the heightened scrutiny and regulatory actions taken over the past year.
Implications for Businesses and Individuals
AUSTRAC CEO Brendan Thomas explained that businesses with canceled registrations lose the legal right to operate in Australia’s financial sector.
He also noted that some individuals connected to these businesses have been referred to both Australian and international law enforcement and regulatory partners for further investigation or enforcement actions.
Highlight on GetCoins Case
One prominent case involved BA Digital Ventures, trading as GetCoins, whose virtual asset service provider registration was canceled in June 2023, following customer complaints.
The regulator indicated GetCoins was reportedly exploited by organized cryptocurrency investment scams.
The cancellation, carried out in collaboration with the National Anti-Scam Centre, was instrumental in disrupting these illicit schemes.
Additional Actions and Ongoing Investigations
AUSTRAC did not disclose the full list of all 45 affected businesses nor provide a breakdown between crypto service providers and remittance operators.
The agency’s public VASP register lists recent regulatory actions involving GetCoins, Cryptolink, Self Custody, Jam Xchange, and Coinsec Australia.
Furthermore, AUSTRAC has opened an investigation into Western Union and suspended the crypto ATM network operated by Cryptolink.
Why it matters
This news highlights Australia’s AUSTRAC intensifying regulation in the high-risk payment sector, including cryptocurrencies and remittances. The cancellation of registrations for businesses that are inactive, insolvent, or pose money laundering risks reflects a proactive regulatory approach to enhancing market transparency and security. The GetCoins case underscores the critical role of coordinated efforts with anti-scam agencies in disrupting crypto-related fraud rings. Meanwhile, investigations into established entities like Western Union signal a broader crackdown and tightening of oversight in Australia’s financial ecosystem, signaling to industry players the increasing compliance expectations and government vigilance.
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