Australia's anti‑money laundering and counter‑terrorism financing (AML/CTF) laws have expanded, strengthening safeguards to make it significantly harder for criminals to launder money through crypto and other virtual assets.
The reforms introduce greater oversight of businesses operating in the virtual asset sector, which AUSTRAC continues to identify as a high money‑laundering risk.
The changes ensure Australia's financial crime laws keep pace with the rapid growth of crypto and other virtual assets, closing known gaps that criminals have sought to exploit, and aligning Australia with global standards.
As part of the reforms, Australia is renaming digital currency exchange (DCE) providers to the internationally recognised term virtual asset service providers (VASPs).
The change reflects the expanding range of crypto‑related products and services captured under the AML/CTF regime and strengthens Australia's ability to supervise this high‑risk sector.
AUSTRAC CEO Brendan Thomas said the agency had prepared for the changes by cleaning up the register to ensure it could not be misused for money laundering purposes, including conducting a targeted review of the DCE register late last year and moving to publish a searchable public register.
As part of the blitz, AUSTRAC focused on businesses that appeared to no longer be trading. We engaged with 128 inactive businesses, resulting in 62 businesses exiting the sector through registration action or voluntary withdrawal.
"Businesses registered with AUSTRAC are required to keep their details up to date; this includes services they no longer provide," Mr Thomas said.
"Last year we ran a Use It or Lose It blitz to make sure the crypto register was not being exploited by inactive or dormant entities for criminal purposes.
"The aim was to protect the integrity of the register, support legitimate providers, and remove entities that were no longer genuinely operating or providing regulated services.
"We focused on identifying inactive or potentially dormant entities that could present a money laundering risk. We want the register used for its intended purpose and not as a vehicle for the improper sale or misuse of an AUSTRAC‑registered business.
The Home Affairs Minister Tony Burke said criminals who seek shelter in crypto are in for a hard lesson.
"These reforms close gaps that criminals have used to move illicit funds through crypto, while ensuring legitimate innovation can continue safely," Minister Burke said.
"By lifting transparency, cleaning up the register, and enforcing a strong regulatory framework, Australia is maintaining a high barrier to entry that deters and disrupts serious and organised crime."
The searchable VASP register is now publicly available, providing greater transparency, supporting legitimate businesses, and making it harder for criminals to hide behind inactive or shell crypto businesses.
The virtual asset sector remains a priority focus for AUSTRAC as a high money‑laundering risk, as outlined in the national risk assessment and AUSTRAC's 2025-26 regulatory priorities.
Under the new laws, all businesses providing virtual asset services must be registered with AUSTRAC and comply with Australia's AML/CTF obligations, reinforcing Australia's high barrier to entry for crypto businesses and deterring serious and organised crime.
