Australia’s financial intelligence unit AUSTRAC has kicked off two targeted supervisory campaigns across the country’s crypto sector as sweeping anti-money laundering (AML) reforms come into force.
AUSTRAC CEO Brendan Thomas said the regulator is “checking how well crypto businesses in Australia are managing money‑laundering risks, ahead of major new laws coming into force.” The campaigns are intended both to assess firms’ current AML/CTF controls and to prepare them for the broader regulatory changes now in effect.
What AUSTRAC is doing
- “Ramps and rails” campaign: engagement with 36 over‑the‑counter crypto‑to‑cash operators that facilitate conversions between crypto and cash.
- Exchange campaign: scrutiny of 27 local crypto exchanges to evaluate governance, compliance readiness and how they’re managing AML/CTF risks.
Why it matters
- Regulatory expansion: Australia has adopted the international term “virtual asset service provider” (VASP), replacing the narrower “digital currency exchange” label. The change extends AML obligations beyond traditional cash‑to‑crypto exchanges to include custody, brokerage and other virtual asset services. As Thomas put it, “This is more than a name change” — it reflects sector evolution and aims to keep the regulatory framework relevant.
- Timing: the expanded rules took effect on March 31, and additional Travel Rule requirements for virtual asset transfers become mandatory on July 1.
- Strategic shift: AUSTRAC has flagged crypto as a top financial‑crime threat and is moving from compliance‑checking to a risk‑focused approach, monitoring behaviour at an industry and sector level rather than just on an entity‑by‑entity basis.
AUSTRAC says it will continue to provide guidance to help businesses meet their AML/CTF obligations as the sector adjusts to the new, broader oversight. For crypto firms in Australia, the message is clear: strengthen governance, shore up risk controls, and be prepared for more intensive supervisory scrutiny.
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