Australian Regulator AUSTRAC Warns Inactive Digital Currency Exchanges (DCEs) to be Delist or Face Removal

The Australian government is cracking down on dormant crypto exchanges, asking inactive exchanges to delist, to crack down on crypto scams and money laundering, because scammers could exploit dormant listings. The Australian regulator responsible for such oversight is the Australian Transaction Reports and Analysis Centre (AUSTRAC). Many registered Digital Currency Exchanges (DCEs) appear to be inactive. AUSTRAC has warned the inactive exchanges to either update their details or be removed from the list. AUSTRAC announced the plan on its government website, stating that many DCEs were inactive out of the 427 registered businesses. AUSTRAC offered them the opportunity to withdraw or face cancellation voluntarily. They reasoned that scammers could use inactive DCEs to commit crimes such as money laundering. They further warned that DCEs must remain up-to-date in their registration process. AUSTRAC then promised that a public list of registered DCEs would be created to help consumers avoid scams. Brendan Thomas, CEO of AUSTRAC, pointed out that businesses must update their details as part of the registration process. He warned DCEs that if they didn’t update their details, they would face cancellation. He said that consumer confidence was very important and that he was trying to prevent people from improperly selling or using DCEs. He said that there were good enough grounds to cancel a registration if the business showed signs of not operating. AUSTRAC is responsible for analysing business intelligence so that scammers are less prevalent in Australia. The agency believes digital assets are a high-risk market and, therefore, focuses a lot of attention on them. AUSTRAC has identified what it thinks is a risk of inactive DCEs being exploited by criminals. AUSTRAC has noticed an alarming increase in crypto scams, prompting more actions to prevent a disaster from happening. Australian businesses that wish to provide conversions between cash and crypto must register with AUSTRAC. The agency monitors these DCEs to detect money laundering, tax evasion, and terror financing. AUSTRAC can delist any of these businesses if a problem is identified. The announcement suggests that AUSTRAC is taking preventative measures before a crime occurs. Inactive DCEs could be exploited by scammers, pretending that the registered business belongs to them, when it is inactive. AUSTRAC has deregistered 10 firms since 2019, including FTX Express in June 2024. AUSTRAC’s current announcement extends previous actions, such as the February 2025 crackdown on rogue crypto firms, which involved actions against 13 financial institutions and an investigation of over 50 crypto businesses. The crackdown targeted businesses that were underreported or didn’t report their activities. AUSTRAC would decide which businesses needed further legal action. An example of under-reporting could include companies that observe suspicious transactions but don’t pass on the information to AUSTRAC.