Australia Removes 45 Crypto and Remittance Firms From Registers

45 registrations for remittance and virtual asset service providers (VASPs) have been erased from Australia’s registers by the country’s financial crime watchdog. The cancellations, suspensions and refused renewals were carried out during the past year.

Some of the individuals behind those companies have been referred to law enforcement by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

Why 45 Crypto Firms Were Struck From Australia’s Registers

AUSTRAC set out a number of reasons for the move. The affected businesses included dormant or inactive operations and, in some cases, insolvent ones. There were also firms that spent long periods without carrying out any designated service.

Some entities could not begin or continue trading because they did not have the necessary operational capacity. Others had an incorrect registration or neglected to tell AUSTRAC about material changes in their operations.

The remaining businesses posed a significant money laundering or terrorism financing risk.

“The rapid movement of money across borders can create some of the highest ML/TF risks,” said Brendan Thomas, AUSTRAC’s CEO. “Financial crime operates across borders, and we work closely with our domestic and international partners to strengthen the financial system not just in Australia, but globally.”

GetCoins Cancellation Falls Within a Broader Payments Sweep

BA Digital Ventures Pty Ltd, which operated under the name GetCoins, was singled out in AUSTRAC’s announcement. After customers lodged complaints, the regulator worked with the National Anti-Scam Centre (NASC).

AUSTRAC then asked for information about the company’s operations to judge whether GetCoins was able to manage its money-laundering exposure. The VASP was allegedly taken advantage of by organized cryptocurrency investment scams, according to AUSTRAC.

The latest actions come alongside other recent moves in payments and crypto. An investigation into Western Union was opened by the regulator on September 1, and Cryptolink was suspended in August, a move that took 96 crypto ATMs offline.

“Our message to industry is clear: understand and manage your risks and meet your reporting obligations, or you may not be able to continue operating,” Thomas also said.

Thomas linked the intensified oversight to AUSTRAC’s annual risk update. He said the agency will keep removing businesses that represent a significant money laundering or terrorism financing risk.