Inactive Crypto Exchanges Face Licence Wipeout in Australia

The Australian Transaction Reports and Analysis Centre (AUSTRAC) said this step is to protect users and stop criminal misuse of digital currencies.

In a statement published on April 29, AUSTRAC explained that it is contacting registered digital currency exchanges (DCEs) that have shown no recent activity. These businesses are being asked to cancel their registration themselves or face having it removed by the agency.

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Brendan Thomas, AUSTRAC’s chief executive, said that inactive businesses are a risk because their official registration makes them seem trustworthy. He added that criminals could take advantage of this, using such businesses for money laundering and scams.

There are currently 427 digital currency exchanges on AUSTRAC’s list. However, the agency believes that many are no longer offering any services. To clean up the register, cancelled licences will be published online, and a public list of active and regulated providers will be created.

Thomas said it is important for people to easily identify which crypto companies are properly registered and under regulatory supervision. He promised that AUSTRAC will continue working to keep criminal activities out of the industry.

For businesses thinking about returning to the market, AUSTRAC’s instructions are clear: if a company plans to offer services again, it must contact the agency. Companies that later restart operations will need to reapply for registration.

Meanwhile, the European Data Protection Board (EDPB) recently released draft guidelines to align the use of blockchain data with EU privacy laws. What do the guidelines include? Read the full story.