Australia Cracks Down on Inactive Crypto Exchanges

The agency also plans to publish a public list of legitimate exchanges to help users avoid scams. This is part of a broader compliance sweep that already led to multiple enforcement actions and denied renewals. Meanwhile, the Bank of Italy flagged digital assets, particularly Bitcoin and dollar-pegged stablecoins, as potential risks to financial stability due to their growing integration with traditional finance and corporate balance sheets. In contrast to these more cautious stances, India is becoming a magnet for Web3 development. Crypto exchange Bitget and Avalanche announced a $10 million initiative to support blockchain innovation in India, where crypto adoption is booming among young investors. Overall, these latest developments shed some light on the very diverging global attitudes toward crypto, regulation, as well as innovation. AUSTRAC Targets Inactive Crypto Firms Australia’s financial intelligence agency, AUSTRAC, recently warned dormant cryptocurrency exchanges to either resume their operations or voluntarily deregister. This is part of the country’s crackdown that is aimed at curbing criminal misuse of inactive platforms. On April 29, AUSTRAC revealed that out of the 427 crypto exchanges currently registered, a big number are suspected to be inactive and at risk of being exploited by scammers. AUSTRAC CEO Brendan Thomas urged that firms must keep their registration details current and active, and warned that those failing to do so will be delisted under a “use it or lose it” directive. Announcement from AUSTRAC To offer crypto-related services like cash-to-crypto conversions or operate crypto ATMs in Australia, businesses must register with AUSTRAC, which oversees compliance with anti-money laundering and counter-terrorism financing laws. Since 2019, ten crypto businesses had their registration revoked for inactivity or non-compliance, including the local subsidiary of collapsed crypto firm FTX, which was deregistered in June of 2024. As part of its renewed efforts to boost transparency, AUSTRAC plans to publish a public list of registered exchanges to help Australians identify legitimate platforms and avoid scams. The agency’s broader compliance sweep already led to enforcement actions against 13 remittance and crypto service providers earlier this year, while over 50 others are still under investigation. Additionally, six providers were denied registration renewals because of serious criminal allegations against key personnel. Despite these enforcement actions, Australia is still in the process of formalizing comprehensive crypto regulation. The government began consultations in August of 2022 to develop a regulatory framework. In March 2025, ahead of the federal election, the government proposed regulating crypto exchanges under existing financial services laws. Bank of Italy Flags Crypto as Financial Risk Other countries are also tightening their leash on the crypto industry. The Bank of Italy identified Bitcoin and other digital assets as emerging risks to investors and financial stability in its latest Financial Stability Report that was published in April of 2025. The central bank pointed out the growing integration of cryptocurrencies with the broader financial system, noticed that the rapid rise in Bitcoin’s value and the volatility of digital assets could have spillover effects beyond the crypto sector. The report warned that increasing connections between the crypto ecosystem, traditional finance, and the real economy pose systemic threats. Part of the Bank of Italy’s Financial Stability Report A lot of attention was given to non-financial companies holding Bitcoin on their balance sheets, and the Bank of Italy is especially concerned over the exposure these firms face due to crypto’s inherent price swings. It explained that some companies may be motivated by the perception that Bitcoin can elevate their share prices. This is a strategy that was popularized by MicroStrategy in 2020 and was since been adopted by other companies like Metaplanet, Semler Scientific, and GameStop. The report also flagged risks associated with stablecoins, particularly those pegged to the US dollar. It warned that if these digital assets become deeply embedded in the financial system, reliance on US government bonds to maintain their pegs could introduce new vulnerabilities. A disruption in either the stablecoins or their underlying reserves could create ripple effects across global markets. A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to a reserve asset like the US dollar, euro, or gold. It combines the benefits of digital assets— fast, bolikerderless transactions—with the price stability of traditional currencies. The central bank’s concerns are very similar to recent comments by Italy’s economy and finance minister, Giancarlo Giorgetti. He warned people that the influence of dollar-based stablecoins may be more threatening to Europe’s economic sovereignty than the tariffs that were imposed by the United States. Giorgetti believes it is crucial to strengthen the euro’s global role and accelerate development of the Digital Euro as a means to counter foreign digital dominance. Avalanche and Bitget Partner to Back Web3 Growth in India While some countries are keeping a very watchful eye on the crypto industry, others are broadening their horizons to welcome new crypto partnerships. Crypto exchange Bitget recently partnered with Avalanche to launch a $10 million initiative that is aimed at supporting Web3 development in India, one of the world’s fastest-growing crypto and tech markets. The collaboration will fund mini-grants, scholarships, hackathons, and educational workshops, and will initially focus on Delhi and Bangalore. These two cities are at the forefront of India’s digital innovation. Delhi is the most populous city, and Bangalore, often dubbed India’s “Silicon Valley,” has seen large increases in crypto engagement. India’s appetite for digital assets surged over the past two years, with data from local exchange CoinSwitch showing that investment in cryptocurrencies accelerated a lot in 2024. Delhi led the country with 20.1% of activity, followed by Bengaluru at 9.6% and Mumbai at 6.5%. The majority of Indian crypto investors are between the ages of 18 and 35. While Bitcoin and Ethereum remain widely traded, Dogecoin (DOGE) was the most invested asset in 2024, with Shiba Inu (SHIB) and Pepe (PEPE) also gaining popularity. India’s top coins (Source: CoinSwitch ) The partnership is made at a time when global crypto exchanges are eyeing India for expansion. In early 2025, Bybit resumed operations after registering with local authorities, and Coinbase began negotiations with regulators to reenter the market. These moves all prove India’s rising importance as a hub for digital finance and innovation. India is also engaged in broader strategic negotiations with the United States, including a potential bilateral trade agreement aimed at avoiding new tariffs under President Donald Trump’s administration. As part of these talks, India is seeking access to key technologies and exports. According to Web3 venture capital firm Hashed Emergent , India already accounts for 12% of the global Web3 developer base and contributed 17% of all new crypto developers in 2024. All of this proves its role as a major force in the evolution of blockchain technology.

Source: Coinpaper