More than 300 crypto exchanges are registered in Australia, according to the government agency overseeing the crypto industry.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is the country’s financial intelligence agency and anti-money laundering regulator. This agency is regulating the crypto industry since April 2018.
AUSTRAC is working hard to minimize the risks connected with money laundering, terrorism financing, and cybercrime.
Based on the information provided by the agency, the number of registered crypto exchanges increases by 27% or 66 exchanges compared with February 2019. Currently, there are 312 registered crypto exchanges in the country.
This is good news, as more and more exchanges realized the importance of regulations. Moreover, a digital currency provider must register with AUSTRAC as it against the law to offer such services without registration.
Crypto exchanges and Australia
As mentioned above, provider must register with authorities. Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires digital currency exchange providers to implement regulations.
Otherwise, AUSTRAC has the ability to take steps to enforce compliance; also, the agency can impose a penalty.
To this day, the regulator canceled the registration of three companies. Webpark Pty. Ltd, Auscoin ATM Pty Ltd, and CAN 625 238 735 Pry. Ltd failed to comply with laws.
Moreover, AUSTRAC suspended the registration of Cryptocurrency Transaction Machines Pty. Ltd. Also, the regulator declined to register three crypto exchanges.
It is worth mentioning that AUSTRAC does not publish the list of all approved crypto exchange service providers.
The Australian Securities and Investments Commission (ASIC) is regulating crypto assets as well as tokens that fall under the definition of financial products. Companies who would like to raise funds through initial coin offerings (ICO’s) also fall under this category.
Companies interested in ICO’s should be aware of the local law. For example, securities law may apply to such companies. It means that a company should possess an Australian financial services license.