Australia’s financial intelligence agency AUSTRAC is taking action against dormant crypto exchanges.
On April 29, AUSTRAC said it would cancel registrations of inactive firms unless they withdraw voluntarily.
Australia currently has 427 crypto exchanges registered with AUSTRAC. However, the agency suspects many are no longer operating.
These dormant crypto firms may be used by scammers to pose as legitimate services.
Brendan Thomas, CEO of AUSTRAC, said the agency has started contacting crypto exchanges that no longer appear to be trading.
“Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided,”
Thomas said. He also warned,
“Use it or lose it.”
Dormant Crypto Firms Pose Scam Risks, Says AUSTRAC
AUSTRAC said that inactive crypto exchanges can be taken over by criminals. These firms may give the impression of legitimacy while being used for scams or financial crimes.
AUSTRAC monitors businesses that convert cash to crypto, including ATM services.
To legally operate in Australia, such crypto exchanges must register with AUSTRAC. The agency oversees compliance with laws targeting money laundering, terrorism financing, and tax evasion.
AUSTRAC has already canceled registrations for firms that failed to comply. Since 2019, ten crypto exchanges lost their AUSTRAC status.
This includes FTX Express, the Australian arm of the collapsed global exchange FTX. Its registration was canceled in June 2024.
AUSTRAC to Publish Public List of Registered Crypto Exchanges
To help the public identify legal crypto exchanges, AUSTRAC plans to release a public list of registered providers.
Brendan Thomas said this will improve the accuracy of the register and make it harder for scammers to operate.
“If a DCE does intend to offer a service, they need to contact us, otherwise we will cancel the registration and this information will be added to the register,” Thomas explained.
He added that Australians should be able to confirm that crypto exchanges are under AUSTRAC’s oversight. The agency aims to prevent criminals from misusing inactive registrations in the growing crypto market.
More Crypto Exchange Investigations Underway in Australia
Earlier in February, AUSTRAC took action against 13 remittance and crypto exchanges. These actions came as part of a broader enforcement effort to ensure compliance with anti-money laundering laws.
The regulator refused to renew registrations for six crypto service providers. AUSTRAC cited concerns over personnel who had been charged, prosecuted, or convicted of serious crimes. More than 50 other providers are still under investigation.
While AUSTRAC continues to apply existing rules, Australia has yet to pass dedicated crypto regulation. In August 2022, the Labor government launched consultations to develop a framework for the sector.
In March 2025, the government proposed a draft regulation that would bring crypto exchanges under financial service laws.
The proposal comes ahead of the federal election on May 3. Until formal laws are enacted, AUSTRAC remains the primary enforcement body overseeing crypto exchanges in Australia.
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