Key Takeaways
Australia’s financial intelligence agency is launching targeted supervisory campaigns into 63 local crypto firms as landmark anti-money laundering reforms that broaden regulatory oversight took effect on March 31.
"AUSTRAC is checking how well crypto businesses in Australia are managing money-laundering risks, ahead of major new laws coming into force," AUSTRAC Chief Executive Officer Brendan Thomas said in a statement.
The campaigns will engage with 36 over-the-counter crypto-to-cash operators and 27 local crypto exchanges. The regulatory overhaul replaces the term "digital currency exchange" (DCE) with the internationally recognized "virtual asset service provider" (VASP), extending AML obligations to custody, brokerage, and other services.
The move signals a significant tightening of crypto oversight in the country, aiming to align with global standards ahead of mandatory Travel Rule requirements that begin on July 1. For firms, this means increased compliance costs and operational reviews to meet the expanded framework.
The two distinct campaigns focus on different segments of the market. The "ramps and rails" initiative targets businesses facilitating the conversion between crypto and cash, a key area for money laundering risk. The second campaign assesses the governance and reform readiness of local exchanges.
This regulatory shift is part of a multi-year effort. Australia has also passed the Corporations Amendment (Digital Assets Framework) Act, which will bring digital asset platforms fully into the financial services licensing regime from April 9, 2027. The regulator previously flagged the crypto sector as a top threat in its financial crime crackdown.
This article is for informational purposes only and does not constitute investment advice.
