The Australian Transaction Reports and Analysis Centre has announced that peer-to-peer cryptocurrency exchanges will be required to capture user information starting March 31, 2026.
AUSTRAC Tightens Screws on Crypto Exchanges, Warns of Enforcement Action
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Reporting Suspicious Transactions
The Australian financial agency responsible for monitoring transactions has said virtual assets services providers such as peer-to-peer cryptocurrency exchanges and custody service providers will be required to capture user information starting March 31, 2026. Furthermore, these entities will also be required to report financial transaction information and suspicious matters to the Australian Transaction Reports and Analysis Centre (AUSTRAC).
In emailed responses to a Bitcoin.com News inquiry, the agency said this requirement would apply to over 400 digital currency exchange providers registered with it. This also applies to a “smaller subset” that provides cryptocurrency automated teller machine (CATM) services.
“From March 31, 2026, these obligations will apply to virtual asset service providers if they offer services in digital asset to digital asset exchange, transfer of digital assets, safekeeping (custodial) services or financial services in the offer of virtual assets. Such services are commonly referred to as peer-to-peer exchange, safekeeping of wallets and initial coin offerings,” AUSTRAC said.
Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), virtual assets services providers are also required to have “appropriate systems, controls and governance in place.” AUSTRAC, which has previously targeted errant entities, warns of enforcement action against cryptocurrency firms that fail to comply with the dictates of the AML/CTF Act.
106 Entities Issued Reminders
In its Feb. 17 update, AUSTRAC revealed that it had taken action against 13 remittance and digital currency exchange providers. Of these, nine had their respective registrations canceled, suspended or refused renewal. Furthermore, the agency has since January 2024 issued 106 entities across all sectors with reminders of their obligations. Still, the agency’s CEO Brendan Thomas has vowed to go after those that have yet to comply.
“Businesses working in this space who are not meeting their obligations can expect to hear from us,” the CEO said.
Meanwhile, AUSTRAC clarified that it is not the agency responsible for regulating specific cryptocurrencies. Instead, it only regulates Australian digital currency exchange providers that exchange cryptocurrencies for fiat currency. The agency added that it has been doing this since April 2018.
