Crypto Exchanges Face AUSTRAC Action Over Inactivity

Inactive Crypto Exchanges Risk Deregistration by AUSTRAC

Australia’s top finance watchdog, AUSTRAC, is cracking down on inactive crypto exchanges in an effort to stop scammers from taking advantage of weak links in the industry. On April 29, the Unit announced that it is contacting digital currency firms that seem to be no longer trading and is warning them to either shut down officially or risk being removed from the agency’s register.

Use It or Lose It

According to AUSTRAC CEO Brendan Thomas, many of the 427 registered digital currency exchanges (DCEs) in the country are likely inactive. These “dormant” firms are not currently offering services but still hold a license, making them easy targets for criminals who might buy them and use them for illegal activity like money laundering or scams.

“Use it or lose it,” Thomas said, explaining that businesses must keep their registration details updated. If a business no longer offers digital assets services, it must inform the organisation or face removal.

Crypto exchanges and ATM providers in Australia must register with AUSTRAC before they begin operations. The agency is responsible for keeping watch over financial crimes such as terror financing, tax evasion, and fraud.

The organisation has the legal power to cancel a company’s registration if it finds the firm inactive. Since 2019, ten exchanges have had their registration canceled, including FTX Express in June 2024—a local arm of the now-defunct global cryptocurrency exchange FTX.

Public List of Legit Exchanges Coming Soon

In a move to help the public stay safe, AUSTRAC will soon publish a list of all registered and active crypto exchanges. This will allow Australians to check whether a platform is legally operating under the body's rules.

“The goal is to make it easier for people to spot real providers and harder for criminals to operate,” Thomas said.

He added that if a digital currency exchange plans to restart its services, it must notify the agency. Otherwise, it will be removed from the registry and flagged as inactive.

More Firms Under Investigation

This latest effort follows earlier actions taken by AUSTRAC against other firms in the crypto and remittance sectors. In February 2025, AUSTRAC took action against 13 providers and continued to investigate more than 50 others for possible rule-breaking.

Six businesses were also denied registration renewals after the agency found that their key staff had been charged or convicted of serious crimes.

Australia Still Working on Crypto Laws

Despite these regulatory efforts, Australia still hasn’t passed full cryptocurrency laws. Back in August 2022, the government, led by the center-left Labor Party, started talks with the industry to come up with proper rules.

In March 2025, just ahead of the federal election on May 3, the government proposed a new plan. This new digital currency framework would put exchanges under existing financial service laws.

The organisation's latest move shows that Australia is tightening control over the industry, especially with no formal laws in place yet. By cleaning up the register and increasing transparency, the watchdog hopes to protect users and shut the door on scammers looking to exploit weak or inactive firms.