The Australian Transaction Reports and Analysis Centre (Austrac) has registered 310 digital currency exchange (DCE) providers since April 2018. This follows its authorization in December 2017 to extend anti-money laundering (AML) and counter-terrorism financing (CTF) regulations to the cryptocurrency sector.
Regulatory Framework for Crypto Exchanges in Australia
Under the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017, DCE providers must:
- Enroll with Austrac and register on the official Digital Currency Exchange Register.
- Implement a risk management program to address AML/CTF threats.
- Verify customer identities (similar to traditional banks).
Report to Austrac:
- Suspicious activities.
- International transactions.
- Cash transactions exceeding AU$10,000.
- Maintain transaction and customer records for 7 years.
Registration Trends
Between April and August 2018, Austrac received 20–58 new registrations monthly. Post-2018, monthly registrations dropped below 20. Austrac clarified it does not track:
- Total exchange volumes.
- Aggregate funds processed by DCEs.
This data was disclosed during Austrac’s testimony to the Senate Economics Legislation Committee, investigating the Currency (Restrictions on Use of Cash) Bill 2019.
Impact of Australia’s Cash Payment Ban
The Bill (passed in October 2019) prohibits cash payments over AU$10,000 for goods, penalizing non-compliant entities.
When questioned if this would drive users toward cryptocurrencies, Austrac responded:
"Cryptocurrencies remain a niche market due to price volatility and limited everyday usability. We monitor emerging risks but see no significant migration to crypto from cash restrictions."
FAQs
1. What is Austrac’s role in regulating crypto exchanges?
Austrac ensures compliance with AML/CTF laws, requiring exchanges to register, report suspicious activities, and maintain customer records.
2. How many crypto exchanges operate legally in Australia?
As of 2024, 310 exchanges are registered with Austrac.
3. Does Austrac track crypto transaction volumes?
No. Austrac focuses on regulatory compliance, not volume monitoring.
4. Will Australia’s cash payment ban increase crypto adoption?
Austrac believes crypto’s volatility and usability barriers limit this effect.
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Keywords: Austrac, cryptocurrency regulation, AML/CTF compliance, digital currency exchanges, Australia crypto laws, AU$10,000 cash ban, crypto registration
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