Australia's Anti-Money Laundering regulator, AUSTRAC, has alerted 50 firms, including crypto exchanges, regarding potential compliance issues.

In December 2024, AUSTRAC announced a shift towards stricter regulations for the cryptocurrency industry in 2025, particularly focusing on crypto ATM providers.

As a result of this regulatory shift, Australia has emerged as the third-largest hub for Bitcoin and crypto ATMs, boasting over 1,453 ATMs, a significant increase from just 67 in August 2022.

Currently, AUSTRAC oversees 417 digital currency exchanges and 5,112 remittance registrations across Australia.

On February 17, 2025, AUSTRAC CEO Brendan Thomas announced that six remittance service providers were denied registration renewal due to serious offenses by key personnel.

The crackdown on non-compliant entities is evident, as three firms that were refused registration no longer operate in Australia.

In addition, two more remittance providers received conditional registrations, with warnings of possible suspension or cancellation for non-compliance.

The Australian Securities and Investment Commission is also drafting guidance to classify many digital assets as financial products, which will require firms involved in crypto to obtain licenses.

To enhance oversight of the crypto sector and combat financial crime, AUSTRAC has proposed new Anti-Money Laundering and counter-terrorism financing rules.

Furthermore, over 50 other firms are under investigation for possible non-reporting of suspicious transactions, indicating systemic compliance issues.

In a related move, AUSTRAC has removed two collapsed crypto exchanges, FTX Express and Zipmex Australia, from the Digital Currency Exchange Register due to insolvencies.