Australia introduces new AML regulations in line with previous regulators’ statements

Yesterday AUSTRAC has announced that the new rules on cryptocurrency organizations have been implemented and thus what previously was a recommendation is now a law.

The new rules on countering the wide use of criminal revenue and illicit finance demand compliance with corresponding acts from cryptocurrency exchanges. This measure will undoubtedly lead to the closure of the organizations the leaders of which governed the said companies irresponsibly, without foreseeing the tightening of the rules. The closure might lead to the short-term local market dip, but in the long term the market will benefit due to the lesser extent of shady players similar to BTC-e.

Australia has already announced the new regulations regarding the cryptocurrency sphere and connected with money laundering prevention in August 2017, so it was only a matter of time before those regulations come into force. The previous statements of AUSTRAC, the state agency which supervises financial activities in the country, have also indicated that the government was well-aware of the risks posed by cryptocurrencies and related business.

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