Australia cracks down on dormant crypto assets exchanges to combat fraud.

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Australia's financial regulator AUSTRAC is taking decisive action to clean up the country's cryptocurrency sector. The agency is cracking down on inactive digital currency exchanges (DCE) and has warned that these idle platforms could be hijacked by criminals for money laundering or fraud. **

**AUSTRAC believes that a significant proportion of the 427 registered DCEs have ceased operations. To address this, the agency is urging these dormant exchanges to voluntarily cancel their registrations. If they do not comply, AUSTRAC will begin revoking its license to prevent potential abuse. **

AUSTRAC CEO Brendan Thomas ( emphasized the risks associated with inactive registrations, pointing out that they can easily be exploited by criminals, thereby undermining the security of the financial system.

Public Register Enhances Transparency

To support consumer protection, AUSTRAC will soon release a public list of active and deregistered exchanges. This move aims to help Australians verify the legitimacy of cryptocurrency platforms and avoid potential scams.

This register is part of a broad initiative to enhance transparency in the industry. AUSTRAC aims to build trust and accountability within the sector by providing clear information to the public.

Part of a larger regulatory reform

**This latest move is in line with Australia's broader strategy to strengthen regulation of the cryptocurrency industry. In recent months, AUSTRAC has taken enforcement action against a number of cryptocurrency companies that failed to meet compliance standards. **

At the same time, the Australian Securities and Investments Commission (ASIC) is proposing new rules requiring cryptocurrency companies to obtain an Australian Financial Services License (AFSL), further incorporating cryptocurrency regulation into the country's financial regulatory framework.

By removing inactive participants and implementing stricter rules, Australia is demonstrating its commitment to creating a safer and more transparent cryptocurrency market. Regulators are determined to protect consumer rights and ensure that only responsible and compliant businesses can operate in this rapidly evolving field.