‘Use It or Lose It’: Australian Watchdog Cracks Down on Dormant Crypto Exchanges

Australia’s financial watchdog has told dormant crypto businesses to “use it or lose it,” warning it will cancel registrations as part of a sweeping crackdown to protect consumers and curb criminal activity.The Australian Transaction Reports and Analysis Centre (AUSTRAC) said it is connecting with digital currency exchanges (DCEs) that appear inactive, urging them to voluntarily withdraw their registrations or face cancellation, in a statement released Monday.AUSTRAC’s CEO, Brendan Thomas, said in the statement that such businesses pose a “high risk” of being “co-opted” by criminals due to the legitimacy attached to AUSTRAC registration.“Our intelligence shows cryptocurrency can be exploited by criminals for money laundering, scams, and money mule activities, and we’re seeing far too many people falling victim to scams involving digital currency,” Thomas said.AUSTRAC has 427 registered DCEs but believes many are no longer operating, according to the statement.The financial watchdog plans to publish cancellations online and launch a public register to help customers verify legitimate providers.“Members of the public should feel confident that they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight,” the AUSTRAC CEO said, vowing to “drive criminals out of this industry.”Several companies, including FTX Express Pty Ltd, AccE Australia Pty Ltd, and Oaks Payments Pty Ltd, have already had their registrations canceled in recent years after falling inactive or facing insolvency.“If a DCE does intend to offer a service, they need to contact us otherwise, we will cancel the registration,” Thomas said, adding that firms can reapply if “circumstances change.”The “blitz” follows a year-long AUSTRAC investigation that led to regulatory actions against 13 crypto firms in February.The regulator flagged over 50 additional firms under scrutiny and warned that non-compliant businesses face suspension or deregistration.The intense crackdown comes as Australia heads toward an election on May 3, with crypto regulation emerging as a key flashpoint.Recently, global crypto exchange Coinbase called on Australian voters to support candidates pushing for clear digital asset regulations, calling the country’s crypto policy environment “frustratingly vague and underdeveloped.”