Australia Cracks Down on Dormant Crypto Exchanges to Combat Scam Risks

Australia financial watchdog, AUSTRAC, has begun a targeted effort to purge its registry of dormant crypto exchanges, warning inactive firms to voluntarily withdraw or face deregistration. In a statement issued April 29, the agency expressed concern that unused digital currency exchange (DCE) licenses could be misused by malicious actors to facilitate scams or illicit activities . Inactive Exchanges Face Deregistration in Australia Currently, 427 crypto exchanges are registered with AUSTRAC, but a significant number are suspected of being non-operational. CEO Brendan Thomas made the agency’s stance clear: if a business isn’t actively trading or offering crypto-related services, it should no longer appear on the register. “We’re asking them to use it or lose it,” he said, adding that outdated registration information not only undermines transparency but poses a security risk. Under Australian law, any business offering crypto-to-cash conversions—including crypto ATMs—must register with AUSTRAC, which oversees compliance with anti-money laundering, counter-terrorism financing, and tax evasion regulations. The agency has the authority to revoke a registration if it believes the business is no longer functioning. Since 2019, ten firms have had their registrations canceled, including the ill-fated FTX Express in June 2024. Shield Consumers from Scams AUSTRAC has also announced it will soon publish a public-facing list of registered crypto exchanges. The goal, Thomas said, is to allow consumers to verify which exchanges are compliant and which are not. “Members of the public should feel confident that they can identify legitimate cryptocurrency providers,” he said. Any inactive business that fails to notify the agency will be removed from the register and added to this new public list. The move is seen as a step toward reinforcing Australia’s broader financial ecosystem and restoring public trust in the wake of several high-profile exchange collapses and scams . AUSTRAC has already taken firm action in recent months, refusing registration renewals for six firms whose personnel faced serious legal charges, and launching investigations into over 50 others for compliance breaches. Regulatory Framework on the Horizon While this cleanup is a positive stride, Australia is still in the process of drafting formal crypto regulations. Since August 2022, the Labor government has conducted industry consultations aimed at shaping a legislative framework. In March 2025, just ahead of the upcoming federal election on May 3 , the government proposed applying existing financial services laws to crypto exchanges. The post Australia Cracks Down on Dormant Crypto Exchanges to Combat Scam Risks appeared first on TheCoinrise.com .

Source: The Coin Rise