Digital currency exchanges in Australia must register with AUSTRAC starting today. The country's financial intelligence agency laid out the requirements in a new page published today, bringing digital
Digital currency exchanges in Australia must register with AUSTRAC starting today. The country's financial intelligence agency laid out the requirements in a new page published today, bringing digital currency businesses under formal anti-money laundering and counter-terrorism financing rules for the first time.
Exchanges must build and maintain programs to spot and manage money laundering and terrorism financing risks, confirm customer identities, file reports to AUSTRAC about suspicious transactions or physical currency over $10,000, and keep records for seven years.
A six-month grace period begins today. "During that period, the AUSTRAC CEO can only take enforcement action if a DCE [digital currency exchange] business fails to take 'reasonable steps' to comply," the agency stated. The rules impose criminal penalties and civil fines on exchanges that operate without registration.
Companies can continue providing services while their registration applications get reviewed under transitional rules. That window closes on May 14, when all exchanges must have submitted their applications.
The Senate passed the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill in December 2017, targeting the illegal use of digital currencies. The law gave AUSTRAC oversight of digital currency exchanges and authority to require their registration. Interest in bitcoin and other cryptocurrencies has grown in Australia, spurring the government to move forward with the new regulations.
Two Queensland politicians have disclosed holdings in digital assets. Nick Dametto, a new MP for Katter's Australian Party, a right-leaning minority party serving Queensland's vast rural population, declared about AUS$20,000 in bitcoin when filing his interests statement, according to the Brisbane Times. Labor's Bart Mellish also declared a bitcoin account.
