Australia Cracks Down on Inactive Crypto Exchanges

Australia Cracks Down on Inactive Crypto Exchanges

In Summary

  • Australia deregisters inactive crypto exchanges amid AML concerns
  • AUSTRAC says dormant platforms pose criminal risk
  • Move aligns with global push for tighter crypto oversight
  • Broader crypto reforms expected later this year


Catenaa, Friday, May 02, 2025-Australia financial intelligence agency has begun removing inactive cryptocurrency exchanges from its official register, part of a wider effort to block the use of digital assets in criminal activity, officials said Wednesday.

The Australian Transaction Reports and Analysis Centre, or AUSTRAC, said it deregistered multiple crypto exchanges that had not engaged in trading or operational activity for extended periods.

The agency cited the potential for such platforms to be exploited by bad actors for money laundering and other illicit purposes.

“The aim is to ensure all registered digital currency exchange providers are active, compliant, and not providing a backdoor to criminal networks,” an AUSTRAC spokesperson said in a statement.

The crackdown is part of an escalating global trend where regulators are tightening oversight of the crypto sector amid rising concerns about its misuse for illegal transactions, terrorist financing, and tax evasion.

Under Australian law, all digital currency exchange providers must register with AUSTRAC, comply with anti-money laundering rules, and report suspicious transactions. Dormant platforms pose a regulatory blind spot that authorities now seek to eliminate.

The agency has not disclosed the exact number of deregistered exchanges but indicated that more removals are likely as it continues reviewing compliance statuses. The move comes as the government prepares to unveil broader reforms to digital asset regulation later this year.

Authorities say the measure aligns with international efforts to create a safer and more transparent crypto ecosystem.

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