Australia Targets Crypto in New Anti-Money Laundering Reforms

AUSTRAC announces largest anti-money laundering reform, targeting cryptocurrency exchanges with a focus on areas with greatest risk of financial harm. Regulations affect virtual asset service providers and digital currency exchanges.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced it would list cryptocurrency as the primary threat in financial crime crackdowns starting July 2025. AUSTRAC’s reform emphasizes protecting Australia’s financial infrastructure, targeting digital currency exchanges and virtual asset service providers for increased regulatory oversight.

Australia’s 2025 AML Reforms: A Crypto-Focused Strategy

AUSTRAC announced a significant reform targeting cryptocurrency as the major threat to financial crime. AUSTRAC’s CEO, Brendan Thomas, emphasized that priority will be given to areas posing the greatest harm, especially concerning digital currency exchanges and virtual asset service providers. As Thomas mentioned, “We will be focusing our effort on those areas of highest harm and we will be transparent in how we use our regulatory capabilities to do that” Regulatory Expectations and Priorities for AUSTRAC 2025-26.

The announcement signifies a shift towards increased regulatory scrutiny of digital asset transactions. Firms involved with cryptocurrencies must comply with stringent monitoring, affecting the movement of major cryptocurrencies and stablecoins.

Industry experts have been attentive to these changes, although direct responses from key leaders remain limited. AUSTRAC indicates it will be transparent in demonstrating regulatory capabilities, focusing efforts on the areas of highest harm.

Significant Market Impact as Ethereum Surges Over 115%

Did you know? Australia’s regulatory approach mirrors initiatives in the UK and EU, implementing comprehensive oversight on virtual asset service providers since mid-2021.

As of the last update, Ethereum’s price stands at $3,439.21 with a market cap of $415.16 billion, according to CoinMarketCap. ETH’s price has seen a 116.45% increase over the last 90 days, reflecting improved market sentiment.

According to Coincu research, heightened regulations could lead to reduced trading volumes in the short run as digital asset platforms re-align. Monitoring of cryptocurrencies helps mitigate financial crimes and protect consumers, providing a compliance framework for stable market operations.