AUSTRAC Cancels, Suspends or Refuses Renewals for 45 Crypto and Remittance Firms
Summary
- Australia’s financial intelligence agency (AUSTRAC) said it canceled, suspended or refused to renew the registrations of 45 crypto and remittance businesses over the past year.
- AUSTRAC said it imposed the sanctions over business closures, insolvency, a lack of capacity to operate properly, and money laundering and terrorism financing risks.
- AUSTRAC said it canceled or suspended the registrations of multiple virtual asset service providers (VASPs), including GetCoins and Cryptolink, and separately opened an investigation into Western Union while suspending a crypto ATM network.
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Australia’s financial intelligence agency, AUSTRAC, said it canceled, suspended or refused to renew the registrations of 45 crypto and remittance businesses over the past year as it stepped up oversight of payment providers considered at high risk for money laundering and other illicit activity.
The Block reported on September 8 that AUSTRAC said the action targeted businesses that were no longer operating, were insolvent or lacked the capacity to conduct business properly. Firms that failed to report significant changes, had errors in their registration information, or posed heightened risks of money laundering and terrorism financing were also subject to sanctions.
AUSTRAC Chief Executive Officer Brendan Thomas said companies whose registrations had been canceled could no longer operate those businesses. Information related to some company officials was also shared with law enforcement and regulatory authorities in Australia and abroad.
AUSTRAC cited BA Digital Ventures, which operated under the name GetCoins, as a representative case. GetCoins had its virtual asset service provider registration canceled in June after customer complaints were raised. AUSTRAC said it believes the company was exploited in an organized crypto investment scam and has responded in coordination with the National Anti-Scam Centre.
AUSTRAC did not disclose the full list of the 45 firms that were sanctioned or provide a breakdown between crypto and remittance operators. Publicly disclosed registration actions involving virtual asset service providers, or VASPs, included GetCoins, Cryptolink, Self Custody, Jam Xchange and Coinsec Australia.
Separately, AUSTRAC said it had opened an investigation into Western Union and suspended Cryptolink’s crypto ATM network.
