Australian digital currency exchange providers have new obligations effective today

Maria Nikolova

Digital currency exchange providers are required to adopt an AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks.

Australia’s financial intelligence agency AUSTRAC has earlier today posted a reminder to digital currency exchange providers about their new AML/CTF obligations. These new requirements get into effect today, April 3, 2018.

Such businesses are required to comply with a range of AML/CTF obligations, including:

  • adopting and maintaining an AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks;
  • identifying and verifying the identities of their customers;
  • reporting to AUSTRAC suspicious matters, and transactions involving physical currency of $10,000 or more;
  • keeping certain records for seven years.

AUSTRAC explains that a ‘policy principles’ period of six months will be in place from today. During that period, the AUSTRAC CEO can only take enforcement action if a digital currency exchange business fails to take ‘reasonable steps’ to comply.

Transitional registration arrangements will be in place for existing businesses to allow them to continue providing services while their registration application is being considered. Existing businesses providing DCE services will need to register with AUSTRAC by May 14, 2018.

The new requirements stem from the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017, which is also known as the “Bitcoin bill”. In December last year, the legislative piece passed both Houses and got Royal Assent.

AUSTRAC’s CEO may suspend the registration of an entity in certain cases. In such cases, the AUSTRAC CEO may have regard to whether the person or any of its key personnel have been:

  • (a) charged, prosecuted, or convicted in relation to money laundering, terrorism financing, terrorism, people smuggling, fraud, a serious offence, or an offence under the AML/CTF Act or FTR Act;
  • (b) the subject of a civil penalty order made under the AML/CTF Act; or
  • (c) the subject of any adversely determined civil or criminal proceedings or enforcement action in relation to the management of an entity, or their commercial or professional activities.

Other factors to consider when suspending one’s registration are whether there are reasonable grounds to believe that:

  • (a) any information or document provided under this Chapter was false or misleading (whether by inclusion or omission) in a material particular;
  • (b) the continued registration of the person involves, or may involve, significant money laundering, financing of terrorism, or other serious crime risk.

Let’s recall that the Amendment Act expands legislation to include regulation of digital currency exchange providers. Under the new regulation, such providers will be required:

  • enroll and register with AUSTRAC;
  • establish, implement and maintain an AML/CTF program, which sets the framework for businesses to comply with their obligations, including customer due diligence requirements;
  • report threshold transactions and suspicious matters to AUSTRAC, and
  • keep appropriate records.

Read this next

Digital Assets and Unite to Pave the Way for Decentralized AI Development

In an effort to create a community-driven platform for on-chain, decentralized AI models; the leaders have decided to join hands with to power Flock with decentralized computing.


Crypto 2025: The Action Points to Follow to Capitalize on Bitcoin and BlockDAG Network’s 2025 20000X ROI Predictions

In this analysis, we delve into the price predictions for Bitcoin and BlockDAG Network, and we explore the factors driving these projections while offering actionable insights for investors that are looking to capitalize on the 20000x potential of these projects.

Retail FX

Orfinex joins Financial Commission as approved broker member

Multi-asset brokerage firm Orfinex has become a member of the Financial Commission, joining the ranks of the self-regulatory organization. This accreditation reassures traders that the firm meets the quality standards set by the commission.


Telegram CEO’s Bitcoin stash valued in hundreds of millions

Telegram CEO Pavel Durov revealed that he has held several hundred million dollars in fiat and bitcoin for the past decade.

Digital Assets

Bitcoin drops below $60K as halving just 300 blocks away

Bitcoin fell below the $60,000 mark on April 17, just days before a scheduled reduction in mining rewards, known as the “halving,” which is set to occur on April 20.


New Meme Coin ICO Dogeverse Raises $6 Million After Completing Coinsult Audit

A new multichain meme coin, Dogeverse, has raised $6 million in its presale and recently passed a smart contract audit.

The new meme coin leverages bridge technology, ensuring the token is available across the most prominent on-chain markets.

Retail FX

Interactive Brokers posts Q1 earnings, raises dividend

Interactive Brokers Group Inc (NASDAQ:IBKR) announced its first-quarter financial results for the period ending March 31, 2024. The leading automated global electronic broker reported a GAAP diluted EPS of $1.61 and an adjusted EPS of $1.64.

Fundamental Analysis, Tech and Fundamental

Global FX Market Summary: USD, FED, Gold  April 17 ,2024

The Fed’s hawkish stance on interest rates is strengthening the US dollar while central banks globally grapple with inflation and economic growth.

Digital Assets

Kraken launches self-custodial wallet, joining competitors like Coinbase

Kraken, the second-largest U.S.-based cryptocurrency exchange, has introduced its own digital wallet, aligning its offerings with those of competitors like Coinbase.