AUSTRAC fines Cointree $75K for delayed crime reports

AUSTRAC, Australia’s financial intelligence agency, fined Cointree, a cryptocurrency exchange based in Melbourne, $75,120 for failing to report suspicious activity promptly as the agency increases its oversight of cryptocurrency.

AUSTRAC CEO Brendan Thomas said timely reporting is crucial to preventing financial crime and warned non-compliant companies would be subject to stricter enforcement.

The exchange is working to strengthen internal compliance systems after self-disclosing the reporting errors.

AUSTRAC tightens rules governing Australia’s crypto industry 

According to reports from sources, the Australian Transaction Reports and Analysis Centre took enforcement action after the cryptocurrency exchange voluntarily disclosed delays in meeting its anti-money laundering reporting obligations.

AUSTRAC said delayed reporting hampers law enforcement’s ability to act swiftly on emerging threats. Emphasizing the urgency, Thomas noted that deadlines were set to ensure timely responses and give the agency time to assess information and alert partners if evidence of illegal activity was found.

Entities must submit a Suspicious Matter Report (SMR) within three business days if they have reasonable grounds for suspicion of money laundering or within 24 hours if they suspect terrorism financing.

However, Thomas acknowledged Cointree’s full cooperation, noting that the company self-reported the issue and acted to correct its systems and controls. He noted that the regulatory response could have been more severe without such cooperation.

The fine was part of a broader AUSTRAC effort to crack down on Australia’s digital currency exchange sector, which it said at the time was “at risk of being exploited for criminal purposes.”

In 2024, AUSTRAC stated that pseudonymity, global reach, and transfer speed were the top three risks presented by the sector. Since then, over 50 firms have been warned of potential noncompliance, while 13 firms have been the subject of enforcement actions, according to the agency.

In a broader coordinated move to modernize crypto regulation and oversight across the digital asset industry space, the Australian government appointed Andrew Charlton as the Assistant Minister for Science, Technology, and Digital Economy last week.

AUSTRAC targets dormant crypto exchanges in preemptive fraud crackdown

AUSTRAC had previously disclosed it was clamping down on inactive cryptocurrency exchanges to stop fraudsters from using them to scam people. It called on registered exchanges that are no longer operating to deregister willingly or have their registrations discontinued.

A spokesperson for the agency stated that out of the 427 DCEs registered with AUSTRAC, about 25% may not be in operation. This came after the spokesperson disclosed that because criminals are more likely to take advantage of dormant businesses, AUSTRAC reviewed DCE’s register to ensure that only genuine, active digital currency exchange providers are listed.

The agency said the initiative was launched ahead of changes to the country’s money laundering laws that will mandate cryptocurrency trading platforms register with AUSTRAC beginning on March 31, 2026.

In the meantime, AUSTRAC contacted any cryptocurrency exchanges that appeared not to be trading. To ensure they are not purchased and used by criminals, Thomas stated on April 29 that dormant exchanges would be instructed to “use it or lose it.”

He continued that companies registered with AUSTRAC must keep their information current, including details about no longer available services. In addition, companies, including cryptocurrency ATM providers, that wish to provide cash-to-crypto conversions to Australians must first register with the agency.

In the face of rising financial crime, AUSTRAC is committed to strengthening Australia’s crypto sector while monitoring for crimes such as tax evasion, money laundering, and terrorism financing.

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