- Australian authorities are about to reform the rules governing crypto businesses.
- AUSTRAC is on a supervisory campaign for crypto businesses ahead of the reform.
- The agency aims to support businesses that are focused on doing the right thing.
The Australian financial intelligence agency (AUSTRAC) has hinted at upcoming reforms that necessitate conducting two supervisory campaigns targeting the region’s virtual asset sector. The agency stated in its latest announcement that it is engaging with dozens of crypto businesses and exchanges, focusing on how they are managing their AML/CTF risks.
AUSTRAC Will Support Genuine Businesses
Addressing the upcoming reform, AUSTRAC CEO Brendan Thomas said the agency will support and guide businesses that are genuinely trying to do the right thing. However, he noted their commitment to adopt a more forensic approach in addressing situations that allow business models to create opportunities for criminals.
According to Thomas, AUSTRAC will focus on assessing how well crypto businesses in Australia are managing money-laundering risks, ahead of major new laws coming into force. The supervisory campaign will be an opportunity for the agency to provide advice and guidance to help businesses comply with the upcoming reforms. The exercise will also equip them to manage their AML/CTF obligations.
Details of AUSTRAC’s latest announcement further noted that the agency is engaging directly with 36 crypto businesses and 27 local exchanges. The agency hinted that Australia is adopting the internationally recognized term VASP, using it to replace the narrower DCE definition native to the country.
Expanding AUSTRAC’s Regulatory Scope
The upcoming laws will cover the broader crypto ecosystem comprising a growing range of crypto-related products, including custody, brokerage, and other virtual asset services beyond traditional cash-to-crypto exchange models.
Before the current initiative, AUSTRAC regulated crypto practices in Australia by implementing specific rules, including a mandatory registration for any business providing digital currency exchange or virtual asset services within the region. The agency also maintained a publicly searchable VASP register to improve transparency and deter criminal use of shell companies.
AUSTRAC also instituted a travel rule, scheduled to take effect from July 1, 2026. The rule requires VASPs to transmit originator and beneficiary data for every transfer, implement risk-based policies for self-hosted wallets, and conduct due diligence on counterparty VASPs.
Related: KuCoin Gains AUSTRAC Registration as Australia Tightens Oversight
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