Australia Tightens Crypto Oversight with 63-Entity Supervisory Campaign

Regulatory bodies are increasing their oversight of the cryptocurrency sector worldwide. In a recent development, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has launched a targeted supervisory campaign to evaluate the anti-money laundering (AML) and risk management frameworks of 63 virtual asset service providers in Australia.

The campaign will scrutinize 36 over-the-counter (OTC) crypto businesses and 27 local exchanges, examining their customer due diligence processes, transaction monitoring systems, and suspicious matter reporting protocols. This move aligns with global trends and recommendations from the Financial Action Task Force (FATF), which has urged member countries to apply AML/CFT measures to the crypto sector.

The focus on OTC desks is particularly notable, as these platforms often facilitate large-volume trades and can be vulnerable to illicit fund flows. AUSTRAC's campaign aims to strengthen internal controls among cryptocurrency businesses and reduce the risk of money laundering or terrorism financing in Australia.