Australia’s financial intelligence agency, AUSTRAC, has initiated two targeted supervisory campaigns covering the digital asset sector, acting under the country’s strengthened anti-money laundering and counter-terrorism financing (AML/CTF) framework that took effect on March 31, 2026.
The first campaign, dubbed “ramps and rails,” focuses on 36 over-the-counter (OTC) operators that facilitate conversions between cryptocurrencies and fiat cash. The second campaign evaluates 27 local crypto exchanges, examining their readiness for the expanded regulatory changes and assessing their internal governance structures. In both sweeps, AUSTRAC’s core objective is to measure how effectively these businesses manage money laundering risks under the newly broadened rules.
“AUSTRAC is checking how well crypto businesses in Australia are managing money laundering risks before the new laws take effect,” said CEO Brendan Thomas. He emphasized that while the agency will support firms genuinely trying to comply, it will also take a more forensic approach toward those falling short.
The legislative overhaul replaces the outdated term “digital currency exchange” with the internationally recognized concept of a virtual asset service provider (VASP). This redefinition extends AML/CTF obligations to custody services, brokerage activities, and other operations beyond simple cash-to-crypto exchanges. Additionally, the Travel Rule, which requires the sharing of originator and beneficiary information during virtual asset transfers, will become mandatory from July 1, 2026.
AUSTRAC’s campaigns aim to ensure that the Australian crypto industry meets these heightened standards, marking a significant step in aligning local regulation with global Financial Action Task Force (FATF) recommendations.
