Inactive Crypto Exchanges Targeted by AUSTRAC in Regulatory Compliance Blitz

Highlights:

• AUSTRAC has begun deregistering inactive crypto exchanges across Australia.
• The crackdown aims to block criminal exploitation of inactive crypto exchanges.
• A public register will soon verify registered crypto exchange providers.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) has now started a new campaign against inactive crypto exchanges across the country. In the report dated April 29, there are 427 providers that are currently registered, and the agency believes that there might be many among them that are inactive. Its objective is to refrain from misuse of these services by certain unlawful organizations and to preserve the broader atmosphere of the cryptosphere.

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AUSTRAC warns inactive crypto exchanges to deregister or face cancellation

Australia’s anti-money laundering regulator, @AUSTRAC, has warned inactive cryptocurrency exchanges, including FTX Express and AccE Australia, that their registrations will be canceled unless they…

— CoinNess Global (@CoinnessGL) April 29, 2025

Blitz Focuses on Risky Registration Loopholes

Inactive crypto exchanges pose risks, especially if they continue to maintain their AUSTRAC registration. Some of these businesses may have closed their inclusive operations, but can easily be regarded by the scammers as a legitimate platform. These firms are being contacted by AUSTRAC, with calls to withdraw voluntarily or risk a forced deregistration.

Apart from preventing possible abuse, AUSTRAC aims to maintain consumer trust in the register. The agency noted that registration provides legitimacy to digital platforms, a fact that can be exploited where there is no supervision. Moreover, inactive listings expose vulnerability added to the fact that operational details are typically outdated.

Moreover, the watchdog stated that all the entities involved in the provision of cryptocurrency-related services, including ATM service providers, must possess a registration from AUSTRAC. Any business establishment that no longer undertakes such services must immediately update its records or formally deregister.

Regulatory Action Intensifies Ahead of Election

The move comes at a time when the authorities are intensifying regulatory attention prior to the national election. There has been an increasing demand for a better regulation of cryptocurrencies in the country. AUSTRAC’s campaign or approach is referred to as ‘Blitz,’ after a year of investigation where several non-compliant businesses were identified.

Earlier in February, the agency flagged 13 crypto firms and raised suspicion on over 50 others for further investigation. The current action aligns with the increasing pressure for regulation in the field of digital assets.

AUSTRALIA’S REGULATOR JUST SHOOK UP CRYPTO

AUSTRAC just hit 13 remittance & crypto providers, shut down six, and put 50+ more on notice for weak compliance.

Two collapsed exchanges – FTX Express & Zipmex – were wiped from the registry.

Regulation isn’t new, but this is a… pic.twitter.com/vi1tiquHo4

— Crypto Town Hall (@Crypto_TownHall) February 17, 2025

Meanwhile, big players such as Coinbase have raised concerns over the Australian regulatory situation. The company has urged voters to vote for candidates who have policies on issues revolving around digital assets.

AUSTRAC wants to ensure that there is stability in the ecosystem. The agency intends to produce a publicly searchable crypto exchange register in order to do so. The register will assist the users in verifying whether a particular exchange is registered and is being supervised by the law. This tool will be beneficial for the customers and help in eliminating the scam possibilities.

AUSTRAC, ASIC, and Police Ramp-Up Enforcement

In a similar context, other Australian agencies have ramped up their efforts in dealing with cryptocurrency crime. The Australian Securities and Investments Commission (ASIC) revealed that it currently shuts down approximately 130 websites offering scams per week. More than 10,000 such fake platforms have been disabled already.

Crypto ATM owners have also been in focus as ASIC accused some of them of violating the anti-money laundering laws. Within a week, more than 130 people had been issued cautions over an organized fraud scheme via fake Binance notifications. The schemes targeted users using SMS and encrypted messaging applications, according to the report.

The @AusFedPolice (AFP) and @binance are working together to combat a surge in impersonation scams targeting Australian crypto users as part of Operation Firestorm.

How These Scams Work:
⚠️ Scammers pose as Binance representatives via SMS and messaging apps
⚠️ They claim an…

— Binance Australia (@Binance_AUS) March 20, 2025

In recent years, several companies, such as FTX Express and AccE Australia, lost their registrations mostly because of their inactivity or insolvency. AUSTRAC also stressed that if such inactive exchanges do not respond, their listings will be removed.

Firms that cease operations may reapply for registration, granted they begin operations again. However, AUSTRAC continues its efforts in clearing inactive crypto exchanges from its database to avoid misuse.

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