In a decisive regulatory move, Australia's financial intelligence agency, AUSTRAC, has launched a crackdown on cryptocurrency exchanges that remain officially registered but are no longer operational.
The campaign is part of a broader effort to prevent these dormant platforms from being exploited in criminal schemes such as money laundering, fraud, and illicit fund transfers.
427 Registered Platforms Under Review
In a statement released Tuesday, AUSTRAC revealed it is currently reviewing 427 registered crypto exchanges amid rising concerns that a significant number of them have ceased active operations.
The agency has begun reaching out directly to these platforms, demanding that they update their registration details or voluntarily withdraw, or face forced deregistration if they fail to comply.
Criminal Risks: Inactive Platforms as a Gateway for Illicit Activity
AUSTRAC CEO Brendan Thomas warned that dormant yet officially registered exchanges create a regulatory blind spot that could be abused by criminal networks.
Inactive platforms that remain on the official register give users a false sense of legitimacy," Thomas said. "Our intelligence indicates that cryptocurrencies are increasingly used in scams and laundering operations, and we've seen real users fall victim to these crimes.
New Public Registry Aims to Boost Transparency and Consumer Safety
In response to these risks, AUSTRAC plans to launch a public registry that will allow consumers to verify the registration and compliance status of any crypto exchange operating in Australia.
The agency also announced it will begin publishing the names of deregistered platforms on its website in the coming months, as part of a broader initiative to protect users and increase market transparency.
AUSTRAC considers the cryptocurrency sector to be high-risk, and believes tighter oversight is essential to maintaining the integrity of Australia’s financial ecosystem.
