Australia’s financial watchdog just sent a message that everyone could understand. If you’re running a crypto exchange and you’re not actually doing anything, it’s time to pack it up or get packed up.
The agency’s had it up to here with exchanges that are little more than empty storefronts, and they’re not asking nicely anymore.
Numbers
Turns out, out of 427 registered crypto exchanges in Australia, a big chunk are just sitting there collecting dust.
Maybe they started with big dreams-moonshots, Lambos, all that jazz-but now? Crickets.
And AUSTRAC’s not having it. Why? Because these ghost exchanges are like unlocked back doors for criminals looking to launder money or run other shady business.
You leave a place unattended, don’t be surprised when the wrong crowd moves in.
Brendan Thomas, the top dog at AUSTRAC, laid it out straight, they want to see what’s happening.
“Businesses registered with AUSTRAC are required to keep their details up to date, this includes details about services that are no longer provided.”
Translation? Don’t think you can just disappear and leave your name on the books. If you’re not using your registration, it’s time to hand it in, before AUSTRAC comes knocking and cancels it for you.
For your safety
And if you think this is just about paperwork, think again. Thomas says this whole crackdown is about protecting the community, making sure regular people don’t get burned by fly-by-night operations and keeping the criminal element out of the picture.
AUSTRAC wants to keep the register clean, accurate, and trustworthy. Use it or lose it, they say. And you better believe they mean it.
Rule
So, if AUSTRAC has reasonable grounds to believe your exchange is inactive, they can yank your registration.
Sure, if you wake up and want back in, you can reapply. But don’t expect a warm welcome.
AUSTRAC’s planning to make a public register of crypto exchanges, so anyone can check who’s legit and who’s just blowing smoke.
Let’s be honest, this isn’t the kind of news that makes you want to pop champagne. It’s more like a cold slap for anyone hoping to coast on a registration while doing nothing.
But hey, if you’re running a real business, you’ve got nothing to worry about. For the rest?
Time to clean up shop, or risk getting swept out with yesterday’s trash.
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