Australia’s financial intelligence body, AUSTRAC, has commenced two supervisory campaigns targeting the nation’s virtual assets sector as significant anti-money laundering reforms are implemented. According to AUSTRAC CEO Brendan Thomas, the focus is on evaluating how cryptocurrency businesses manage money-laundering risks in anticipation of new regulatory laws.
AUSTRAC’s efforts involve engaging with numerous crypto enterprises and exchanges to scrutinize their Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) risk management practices, preparing them for upcoming legislative changes.
The first campaign, dubbed the ‘ramps and rails’ initiative, is aimed at 36 over-the-counter operators converting cryptocurrencies into cash. The second targets 27 domestic crypto exchanges to assess their readiness for regulatory reforms and evaluate governance structures. These campaigns aim to ensure that businesses are effectively managing money laundering risks under the new regulatory framework.
“We will continue to provide advice and guidance to assist businesses on how to comply so they are well equipped to manage their AML/CTF obligations,” Thomas stated.
The regulatory changes extend beyond traditional exchanges, with Australia adopting the global term “virtual asset service provider” (VASP), replacing the previous narrower definition of “digital currency exchange.” The expanded framework now imposes anti-money laundering requirements on services like custody and brokerage, in addition to conventional cash-to-crypto exchanges.
“This is more than a name change,” Thomas remarked, noting that it reflects sector evolution and ensures regulatory relevance.
The supervision campaigns coincide with the implementation of major anti-money laundering reforms, effective from March 31, broadening oversight to include Virtual Asset Service Providers (VASPs). AUSTRAC has aligned its definition with international standards by substituting “digital currency exchanges” for VASPs. Additional Travel Rule requirements for virtual asset transfers will become mandatory on July 1.
Previously, AUSTRAC identified crypto as a top threat in financial crime crackdown efforts. Thomas indicated that the sector was experiencing a regulatory shift towards addressing substantive risks and harms at an industry level rather than focusing solely on individual entities.