Australia Cancels Registrations of 45 Cryptocurrency and Remittance Companies in the Past Year

AUSTRAC Announces 45 Cancellations of Registrations in the Past Year

AUSTRAC (Australian Transaction Reports and Analysis Centre), Australia's anti-money laundering and financial intelligence agency, has announced that it has strengthened regulatory oversight of remittance providers and virtual asset service providers (VASPs) over the past year, resulting in a total of 45 cancellations, suspensions, and refusals of registrations.

The background to these regulatory measures includes compliance violations and a lack of operational capability. Specifically, cases of business activity cessation or insolvency, deficiencies in registration details, failure to report significant changes, and serious involvement in money laundering or terrorist financing risks have been identified as contributing factors. AUSTRAC's CEO, Brendan Thomas, emphasized that businesses that have lost their registration status cannot legally provide services within the country. He also revealed that information regarding certain related individuals has been shared with domestic and international law enforcement agencies and financial authorities.

Intervention for Fraud Prevention and Specific Cases like GetCoins

A notable example of the regulatory authority's swift response contributing to the prevention of financial crime is GetCoins (operated by BA Digital Ventures Pty Ltd).

Following investigations based on customer complaints and collaboration with the national fraud prevention center, unacceptable risks were identified, leading to the cancellation of its VASP registration in June. The company was suspected of being exploited by an organized cryptocurrency investment fraud group, and the cancellation of its registration helped prevent further victimization. However, there is a time lag in reflecting this cancellation on the company's official website and business number (ABN) status, so users should remain vigilant.

Moreover, AUSTRAC's law enforcement actions extend beyond the cryptocurrency sector to the industry as a whole. In August, the registration of Cryptolink was suspended, forcing the company to halt its network of 96 cryptocurrency ATMs operating domestically. Additionally, a comprehensive investigation into the anti-money laundering measures and governance structures of Western Union, a major remittance service provider, has also been initiated.

Handling of Customer Funds Upon Registration Cancellation and Future Regulatory Framework

When a business's registration is canceled, the most concerning issue is the fate of customer funds. However, the cancellation measures by AUSTRAC do not immediately invalidate or freeze users' ownership rights or rights to fund refunds.

In cases where a company is insolvent, it is common for refunds not to be made immediately. In such cases, a liquidator or trustee intervenes, and procedures for the distribution of recoverable assets are carried out based on custody arrangements, contractual terms, and relevant laws.

Currently, Australia is working on transitioning cryptocurrency platforms to a more robust protection system. Obtaining an AFSL (Australian Financial Services License) under the jurisdiction of ASIC (Australian Securities and Investments Commission) and joining AFCA (Australian Financial Complaints Authority), an independent dispute resolution body, are required, with compliance deadlines set for September 30, 2026. The introduction of a multi-faceted regulatory framework is rapidly advancing user protection and the overall health of the industry.

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