Australia Lays Down New AML/CTF Rules For Crypto Exchanges

By Casper Brown
Published April 3, 2018 Updated April 3, 2018
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Australia Lays Down New AML/CTF Rules For Crypto Exchanges

By Casper Brown
Published April 3, 2018 Updated April 3, 2018

The Australian financial intelligence agency, AUSTRAC has published the new set of anti-money laundering and counter-terrorism financing rules for the Australia crypto exchanges that get into effect from today. The agency has given six months for operators to register or get penalized or criminally charged if failed to comply.

AUSTRAC’s AML/CTF rules for Australia crypto exchanges

Australia has just provided a new set of rules for digital currency exchanges to follow. These rules are basically aimed towards Anti-money laundering and terrorism financing (AML/CTF). AUSTRAC, the financial intelligence agency of the country just published these rules on its official website that provides the crypto exchange platforms enough time to ensure their compliance with these regulations.  

These obligations that need to be met by every crypto exchange involves:

  • Adopting as well as maintaining an AML/CTF program so that the risks associated with the terrorist financing and money laundering can be identified, mitigated and further managed
  • Identifying the identity of customers and their verification
  • Keeping the particular records for about seven years
  • The crypto exchanges have to further report the suspicious matters and transactions that involve the physical currency of $10,000 (7,700 US Dollars) or more, to the AUSTRAC

Also, read: What are KYC and AML? Why it’s so Important in Cryptocurrencies?

6 months time to get registered or face charges

Cryptocurrency exchanges that are offering their services without getting registered will be facing penalties and criminal charges as posted by the financial authority:

“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 DCE business fails to take ‘reasonable steps’ to comply.”

It has further mentioned by the regulators that while an application of an exchange for registration is under consideration, a transitional registration arrangement will take place that would basically allow the existing operators to continue their business and provide services. As for the businesses that are offering the DCE services, those have to get registered before May 14, 2018.  

The process to counter the illegal use of cryptocurrencies started in 2017 when the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 was approved by the Australian Senate that further gave the oversight rights of crypto exchanges to AUSTRAC.  

Before this, Australia passed the legislation to end the double taxation of cryptocurrencies. Crypto purchases that previously were subjected to GST (Goods and Services Tax) will be treated the same way as foreign currencies in terms of GST once the bill passes.

Australia has laid down its AML/CTF rules for cryptocurrency exchanges, now it’s time that other countries follow the same and make the crypto sector a secure ecosystem for investors.


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Casper Brown
410 Articles
I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.

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