AUSTRAC targets inactive cryptocurrency companies
Australia's financial intelligence agency AUSTRAC recently warned dormant cryptocurrency exchanges to resume operations or voluntarily deregister. This is part of Australia's efforts to combat the illegal use of inactive platforms.
On April 29, the Australian Transaction Reports and Analysis Centre (AUSTRAC) disclosed that among the currently registered 427 cryptocurrency exchanges, many appear to be inactive and face the risk of being exploited by fraudsters. AUSTRAC CEO Brendan Thomas urged companies to keep their registration information up-to-date and valid, warning that companies failing to do so will be deregistered under the 'use it or lose it' directive.
AUSTRAC announcement
In Australia, businesses wishing to provide cash exchange for cryptocurrencies or operate cryptocurrency ATMs must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). AUSTRAC is responsible for overseeing compliance with anti-money laundering and counter-terrorism financing laws. Since 2019, 10 cryptocurrency businesses have had their registrations revoked for being inactive or non-compliant, including the local subsidiary of the now-defunct cryptocurrency company FTX, which was deregistered in June 2024.
As part of its new initiative to enhance transparency, AUSTRAC plans to publish a public list of registered exchanges to help Australians identify legitimate platforms and avoid scams. The agency's broader compliance actions earlier this year involved enforcement actions against 13 remittance and cryptocurrency service providers, with over 50 more still under investigation. Additionally, the registration renewal applications of six providers were denied due to serious criminal charges against key personnel.
Despite these enforcement actions, Australia is still developing a comprehensive regulatory framework for cryptocurrencies. The government began consultations in August 2022 to formulate a regulatory framework. In March 2025, on the eve of the federal election, the government proposed regulating cryptocurrency exchanges under existing financial services laws.
The Bank of Italy includes cryptocurrencies as a financial risk
Other countries are also strengthening regulations on the cryptocurrency industry. In its latest Financial Stability Report released in April 2025, the Bank of Italy listed Bitcoin and other digital assets as emerging risks for investors and financial stability.
The central bank noted the deepening integration of cryptocurrencies with the broader financial system and observed that the rapid rise in Bitcoin's value and the volatility of digital assets may have spillover effects on areas outside the cryptocurrency sector. The report warns that the increasingly close ties between the crypto ecosystem, traditional finance, and the real economy pose a systemic threat.
Part of the Bank of Italy's Financial Stability Report
Non-financial companies holding Bitcoin are under scrutiny, with the Bank of Italy particularly concerned about the risks these companies face due to the inherent price volatility of cryptocurrencies. The central bank explained that some companies may be driven by expectations that Bitcoin can boost their stock prices. This strategy was promoted by MicroStrategy in 2020 and has since been adopted by other companies like Metaplanet, Semler Scientific, and GameStop.
The report also highlighted risks associated with stablecoins, particularly those pegged to the US dollar. It warned that if these digital assets become deeply embedded in the financial system, reliance on US government bonds to maintain their peg could introduce new vulnerabilities. Disruptions to stablecoins or their underlying reserves could have a cascading effect on global markets.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to reserve assets such as the US dollar, euro, or gold. They combine the advantages of digital assets—fast, peer-to-peer transactions—with the price stability of traditional currencies.
The central bank's concerns closely align with recent comments made by Italy's Minister of Economy and Finance Giancarlo Giorgetti. He warned that the impact of dollar-pegged stablecoins could pose a greater threat to European economic sovereignty than tariffs imposed by the US. Giorgetti emphasized the importance of strengthening the euro's global standing and accelerating the development of a digital euro as a means of countering foreign digital dominance.
Avalanche partners with Bitget to support the development of Web3 in India
Some countries remain highly vigilant toward the cryptocurrency industry, while others are broadening their horizons and welcoming new cryptocurrency partners. The cryptocurrency exchange Bitget recently partnered with Avalanche to launch a $10 million initiative aimed at supporting Web3 development in India (one of the fastest-growing cryptocurrency and tech markets in the world).
This collaboration will fund small grants, scholarships, hackathons, and educational workshops, initially focusing on Delhi and Bangalore. These two cities are at the forefront of India's digital innovation. Delhi is the most populous city, while Bangalore, often referred to as India's 'Silicon Valley,' has seen a significant increase in cryptocurrency participation.
In the past two years, interest in digital assets in India has surged. Local exchange CoinSwitch data shows that cryptocurrency investment accelerated significantly in 2024. Delhi leads the country with an activity rate of 20.1%, followed by Bangalore (9.6%) and Mumbai (6.5%). Most cryptocurrency investors in India are aged between 18 and 35. While Bitcoin and Ethereum continue to be widely traded, Dogecoin (DOGE) was the most invested asset in 2024, with Shiba Inu (SHIB) and Pepe (PEPE) also gaining popularity.
Top currencies in India (Source: CoinSwitch)
This collaboration comes at a time when global cryptocurrency exchanges are increasingly targeting the Indian market for expansion. In early 2025, Bybit resumed operations after registering with the local government, and Coinbase also began negotiations with regulators to re-enter the market. These initiatives underscore India's growing importance as a center for digital finance and innovation.
India is also engaged in broader strategic negotiations with the US, including a potential bilateral trade agreement aimed at avoiding new tariffs imposed during the presidency of Donald Trump. As part of these negotiations, India is seeking channels for key technologies and export products.
