Dormant Crypto Platforms Face Scrutiny in Australia

Australia’s financial intelligence agency, AUSTRAC, is taking decisive action against dormant crypto exchanges over concerns they could become conduits for fraud or criminal misuse.

On 29 April, the agency announced it is contacting registered digital currency exchanges (DCEs) that appear inactive, urging them to either voluntarily withdraw their registration or face cancellation.

AUSTRAC CEO Brendan Thomas made the warning clear: exchanges must “use it or lose it.

He added:

“Businesses registered with AUSTRAC are required to keep their details up to date; this includes details about services that are no longer provided.”

Currently, 427 crypto exchanges are registered with AUSTRAC.

However, the agency suspects a substantial portion are no longer operational—raising the risk they could be acquired and exploited by malicious actors.

Businesses that facilitate cash-to-crypto conversions in Australia, including operators of crypto ATMs, are legally required to register with AUSTRAC.

The agency oversees these entities to detect and prevent financial crimes such as money laundering, terrorism financing, and tax evasion.

Under existing rules, AUSTRAC can revoke a registration if it reasonably believes the entity is no longer engaged in crypto-related activities.

Since 2019, ten registrations have been canceled—most recently FTX Express, the Australian subsidiary of the now-defunct crypto exchange FTX, in June 2024.

AUSTRAC to Publish Official Registry of Crypto Exchanges

In the wake of its crackdown on dormant crypto exchanges, AUSTRAC has announced plans to publish a public list of registered platforms, aiming to help Australians verify legitimate providers more easily.

According to Thomas, the move is intended to make it more difficult for scammers to operate and to enhance the accuracy and transparency of the agency’s digital currency register.

He noted:

“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. Members of the public should feel confident that they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight and that we are driving criminals out of this industry.”

Earlier this year, in February, AUSTRAC took enforcement action against 13 remittance and crypto service providers, while more than 50 others remain under investigation for potential compliance violations.

In six of those cases, the regulator refused to renew registration due to key individuals being charged, prosecuted, or convicted of serious offenses.

Despite these actions, Australia has yet to implement comprehensive crypto-specific legislation.

Since August 2022, the ruling center-left Labour government has engaged in industry consultations to shape a regulatory framework.

Most recently, in March, the government proposed regulating crypto exchanges under existing financial services laws—a move expected to become a central issue in the lead-up to the federal election scheduled for 3 May.