Australian Finance Watchdog to Monitor Bitcoin Exchanges

The Australian Transaction Reports and Analysis Centre has received the go-ahead to monitor bitcoin exchanges after the passing of a new bill.

AccessTimeIconDec 8, 2017 at 1:30 p.m. UTC
Updated Sep 13, 2021 at 7:15 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Australian Transaction Reports and Analysis Centre (Austrac), the country's financial intelligence agency, has received the go-ahead to monitor bitcoin exchanges.

The news means cryptocurrency exchanges in the country will have to register with Austrac and be placed on a dedicated register. They will also be required to set up other procedures, including countering the risks of money laundering and terrorism financing, verifying customers' identities, and maintaining some records for seven years, a ZDNet news report indicates.

Aimed to counter illicit uses of cryptocurrencies, the announcement comes after the Australian Senate approved the Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2017 on Wednesday.

According to ZDNet, FinTech Australia CEO Danielle Szetho noted that the legislation would bring "legitimacy" to exchanges operating in Australia, "unlocking the benefits of digital currency usage and trading whilst ensuring this is done in an appropriate way."

The bill is the second notable piece of Australian legislation to be passed in the last few months.

Following the passing of another bill in the country's parliament in October, the long controversial "double taxation" of cryptocurrencies (first when purchasing them, then later when buying items subject to the tax) finally came to an end.

The situation arose from the previous law, enacted in 2014, which treated cryptocurrencies as bartered goods for goods and services tax (GST) purposes – legislation that quickly received criticism from technology advocates who argued it hampered the industry and innovation.

Australian parliament image via Shutterstock

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


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.