Australia's financial intelligence agency, AUSTRAC, has declared cryptocurrency as the top threat in its crackdown on financial crime. AUSTRAC also announced legal priorities marking "the most ambitious overhaul of Australia's anti-money laundering laws in a generation."
Expanding the scope of regulation and focusing on risks
AUSTRAC CEO Brendan Thomas stated that the agency will prioritize law enforcement where "the risk of harm is greatest," particularly emphasizing digital currency exchanges and virtual asset service providers that facilitate instantaneous global transfers. "This year marks a shift in regulation – from rules primarily checking compliance to focusing on substantial risks and harms," Thomas said.
The expanded regulatory network will include around 80,000 new businesses from "stage 2" sectors such as real estate agents, lawyers, accountants, trust service providers, and companies, as well as precious metal and gemstone dealers. Current entities must comply with new obligations by March 31, 2026, while stage 2 entities must comply by July 1, 2026. Digital currency has emerged as a particular concern for regulators due to their cross-border capabilities.
Industry leaders welcomed the clarity in regulation, although concerns remain about the timeline for implementation and access to traditional banking services for digital asset companies. However, some experts view this regulatory development positively, arguing that Australia is directly addressing the risks associated with digital assets and will "likely collaborate with the industry to mitigate those risks, rather than looking to restrict or stifle business operations."
