What happened?
Australia’s financial intelligence agency, AUSTRAC, is increasing its oversight of cryptocurrency exchanges and has warned inactive platforms to deregister or risk cancellation. They aim to prevent criminal exploitation by ensuring that exchanges which seem inactive are no longer listed, as this poses a vulnerability in the system. AUSTRAC will also introduce a publicly accessible register to help the public verify if an exchange is officially registered and under scrutiny.
Who does this affect?
This affects all cryptocurrency exchanges and ATM providers in Australia, especially those that are currently inactive but still registered. Traders and investors using these platforms could be impacted, as unauthorized or unverified operations might lead to scams or fraudulent activities. Additionally, consumers will benefit from enhanced security measures and the ability to confirm the legitimacy of exchanges through the new register.
Why does this matter?
This initiative is significant for maintaining the integrity of the cryptocurrency market in Australia by mitigating risks associated with money laundering, scams, and other criminal activities. It increases trust in the market by ensuring that only legitimate and compliant exchanges operate within the country. A more secure market environment can potentially attract more legitimate investments, promoting overall growth and stability in the crypto industry.