Australia Takes Bold Steps to Tighten Crypto Exchange Regulations – BitRss

Australia’s financial crime-fighting agency, AUSTRAC, has issued formal warnings to over 50 local financial institutions for failing to comply with anti-money laundering and counter-terrorism financing laws. Central to the warnings is the failure of firms managing cryptocurrency transactions to report suspicious activities. AUSTRAC has stated that if the identified deficiencies are not rectified, some financial institutions may face the cancellation of their registrations.

Strict Oversight of Cryptocurrency Exchanges

AUSTRAC has initiated investigations against 13 cryptocurrency exchanges for not disclosing the backgrounds of key personnel. These exchanges have been given 28 days to address their shortcomings. Companies that fail to respond adequately may have their licenses revoked.

Cryptocurrency exchanges pose high risks for regulators due to significant fund movements. AUSTRAC CEO Brendan Thomas noted that the cryptocurrency market could facilitate illicit activities by accelerating cross-border money transfers. To minimize such risks, regulators are tightening their oversight processes….