Cryptocurrency providers face new laws

AUSTRAC has introduced new laws governing digital currency exchange (DCE) providers operating in Australia.

The laws cover for the first time regulation of service providers of cryptocurrencies, including bitcoin.

AUSTRAC’s CEO, Nicole Rose, said the move will strengthen the agency’s compliance and intelligence capabilities to help DCEs put in place systems and controls that can reduce the risk of criminals using them for money laundering, terrorism financing and cybercrime.

Effective yesterday, DCEs with a business operation located in Australia must register with AUSTRAC and meet anti-money laundering and counter-terrorism financing (AML/CTF) compliance and reporting obligations.

Current DCE businesses have until 14 May 2018 to register.

Rose said the new laws had been generally welcomed by the sector.

“It’s recognised that this reform will help protect their business operations from money laundering and terrorism financing, while regulation will also help strengthen public and consumer confidence in the sector,” she said.

“AUSTRAC now has increased opportunities to facilitate the sharing of financial intelligence and information relating to the use of digital currencies, such as bitcoin and other cryptocurrencies, with its industry and government partners.

“The information that these businesses will collect and report to AUSTRAC will have immediate benefit in the fight against serious crime and terrorism financing,” she added.

AUSTRAC is Australia’s financial intelligence agency and AML/CTF regulator.

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires regulated entities to collect data to establish a customer’s identity, monitor transactions and report transactions or activity that is suspicious or involves large amounts of cash over $10,000.

Image credit: ©stock.adobe.com/au/robsonphoto

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