AUSTRAC launches crypto supervision campaigns
AUSTRAC has launched two supervisory campaigns targeting 36 crypto-to-cash operators and 27 exchanges to assess AML/CTF risk management as VASP rules take effect.
AUSTRAC has opened two targeted supervisory campaigns to review how Australia’s crypto businesses manage anti-money laundering and counter‑terrorism financing risks. The agency is engaging with 36 over‑the‑counter crypto‑to‑cash operators and 27 local exchanges as new rules for virtual asset service providers come into force.
The first campaign, called the “ramps and rails” program, focuses on businesses that convert cryptocurrencies into traditional cash. The second campaign reviews the governance arrangements and regulatory readiness of the 27 exchanges identified for supervision.
Major regulatory changes took effect on March 31. The law replaces the narrower term “digital currency exchange” with the internationally recognized term “virtual asset service provider” and extends AML/CTF obligations to custody, brokerage and other services beyond direct cash‑to‑crypto exchanges.
Additional Travel Rule requirements for virtual asset transfers will become mandatory on July 1, applying new standards for information sharing in transfers of virtual assets.
AUSTRAC said the supervision is intended to check how well firms identify and manage money‑laundering risks as oversight expands. AUSTRAC Chief Executive Brendan Thomas said, “We’re conducting 2 supervisory campaigns aimed at Australia’s virtual assets sector. We’re engaging with dozens of crypto businesses and exchanges to focus on how they’re managing their AML/CTF risks & prepare them for upcoming reforms.”
The agency said its engagement will include advice and guidance to help firms meet their obligations. “We will continue to provide advice and guidance to assist businesses on how to comply so they are well equipped to manage their AML/CTF obligations,” AUSTRAC said.
AUSTRAC has previously identified crypto as a top threat to the integrity of the financial system and said it will target enforcement activity where the risk of harm is greatest. The regulator will use the findings from these campaigns to inform further supervision, enforcement actions and guidance for the sector as the new obligations take effect.
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