New AML Rules for Australia's Bitcoin Exchanges Kick In Today

Australia’s cryptocurrency exchanges must now follow new rules aimed to counter money laundering and terrorism financing.

AccessTimeIconApr 3, 2018 at 8:55 a.m. UTC
Updated Aug 18, 2021 at 8:40 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

Australia’s cryptocurrency exchanges must now follow new rules aimed to counter money laundering and terrorism financing (AML/CTF).

Providing a timely reminder to exchange platforms in the crypto space, Austrac, the country's financial intelligence agency, has just published a new web page setting out their new obligations as of April 3.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Going forward, exchanges must meet new obligations, which include: registering with the agency, adopting and maintaining an AML/CTF program, identifying and verifying users, and

    reporting suspicious behaviour and transactions involving fiat currency of A$10,000 (US$7,700) and over. They must also maintain records for seven years.

    While offering exchange services without being registered can now bring criminal charges and penalties, Austrac says in the post:

    "A ‘policy principles’ period of six months will be in place from 3 April 2018. During that period, the AUSTRAC CEO can only take enforcement action if [a cryptocurrency exchange] fails to take ‘reasonable steps’ to comply."

    And, while exchanges' registration applications are being considered, a transitional arrangement will allow existing firms to continue providing services, however they must to register by May 14.

    Aimed to counter illicit uses of cryptocurrencies, the new regulations were first set in law when the Australian Senate approved the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 in early December 2017. The bill also gave Austrac oversight of cryptocurrency exchanges.

    That bill was the second notable piece of legislation to be passed in Australian last year. Another bill, passed in October 2017, ended the long-controversial "double taxation" of cryptocurrencies. Previously, cryptos were taxed first upon purchase, then effectively again when buying items subject to the tax – a situation that arose from a previous 2014 law that treated cryptocurrencies as bartered goods for goods and services tax (GST) purposes.

    With the passing of the bill, as of July 1, 2018, bitcoin and other cryptocurrencies will get the same GST treatment as foreign currencies.

    Sydney image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.