Australia Starts Regulating Its Cryptocurrency Exchanges With New AML Rules

On April 3, the Australian government confirmed officially that for exchanges to operate in the country, they must further abide by the anti-money laundering rules. The information available on AUSTRAC (Australian Transaction Reports and Analysis Centre) says that digital Cryptocurrency Exchanges will now require to undergo the process of reporting and identity checking procedures and hence they need to register with the authorities as well.

Additional duties of the exchange now include adopting and maintaining the AML/CTF program, while report suspicious behaviour or transactions that involve fiat currencies of above A$10,000 (US$7,700). The exchanges must also maintain all records for a period of seven years.

However, if exchanges fail to comply with getting registered, they will be subjected to criminal charges and penalties. In its post, AUSTRAL notes: “A ‘policy principles’ period of six months will be in place from 3 April 2018. During that period, the AUSTRAC CEO can only take enforcement action if [a Cryptocurrency Exchanges] fails to take ‘reasonable steps’ to comply.”

While the exchange’s registration applications are under review, a simultaneous arrangement allows existing exchanges to continue providing their services. However, the exchanges must register by May 14.

Back in December 2017, the Australian government introduced new regulations after the Australian Senate approved the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill.

Governments across the globe have stepped up the regulatory measures due to increasing reports of the illicit use of digital currencies, and Australia is the latest one to join this club.