Australia’s Crypto Purge: Regulators Target ’Zombie’ Exchanges in Market Cleanup
Down Under’s digital asset scene braces for a shakeup as regulators sharpen their knives. The Australian Securities and Investments Commission (ASIC) is cracking down on dormant crypto platforms—because nothing says ’healthy market’ like bureaucrats deciding who gets to fail properly.
The Great Aussie Exchange Cleanout
Expect a wave of license revocations for exchanges that haven’t traded dust since the last bull run. ASIC’s move aims to protect investors from platforms that exist only on paper—or more likely, in some forgotten AWS server.
Survival of the Fittest (or Most Active)
Active platforms won’t sweat this purge, but the ’set-and-forget’ operators? They’re about to learn the hard way that crypto regulation isn’t just for show. Pro tip: If your exchange’s most recent tweet congratulates Bitcoin on hitting $20k, you might be on the chopping block.
Another day, another regulatory reckoning—because apparently even decentralized finance needs someone to take out the trash.
‘Use It Or Lose It’ Warning To Dormant Exchanges
AUSTRAC has noticed a concerning pattern among the 427 registered Australian cryptocurrency exchanges. They are largely abandoned but still active on the register.
Chief Executive Officer Brendan Thomas sounded a dire warning to these ghost operations. “We’re warning these businesses: use it or lose it,” Thomas said. The agencies suspect criminals will purchase these idle businesses and utilize their current registrations.
Any transaction that exchanges money for crypto, such as ATM operators, are required to be registered with AUSTRAC by existing regulations. The agency monitors money laundering, terrorist financing, and tax evasion through these enterprises.
AUSTRAC warns inactive crypto exchanges to deregister or face cancellation
Australia’s anti-money laundering regulator, @AUSTRAC, has warned inactive cryptocurrency exchanges, including FTX Express and AccE Australia, that their registrations will be canceled unless they…
— CoinNess Global (@CoinnessGL) April 29, 2025
10 Registrations Already Cancelled Since 2019
AUSTRAC has not shied from stripping away approvals when the need arises. Ten companies have had their registrations canceled in the last five years, according to records. The latest was against FTX Express in June 2024, Australia’s arm of collapsed global crypto exchange FTX.
The cancellations demonstrate AUSTRAC’s authority to strike companies from their register when there is reasonable ground to suspect that they no longer exist or provide crypto services.
In an effort to safeguard consumers, AUSTRAC is set to release an official list of registered exchanges. This move will assist Australians in verifying whether a crypto service is genuine before risking their money.
Members of the public should feel confident that they can identify legitimate cryptocurrency providers that are registered and subject to regulatory oversight, Thomas explained. “We are driving criminals out of this industry,” he said.
The list aims to improve trust in the crypto sector by making it easier to spot properly registered businesses.
AUSTRAC’s targeting of ghost exchanges is part of its wider enforcement drive. In February, the regulator took action against over a dozen remittance providers and exchanges. Sources indicate around 50 other businesses are under investigation for potential rule breaches.
Six providers were denied renewal of registration because major personnel had been convicted, charged, or prosecuted for major offenses.
This purge arrives as Australia continues to develop broader crypto regulations. The governing Labor Party initiated discussions with industry specialists on new regulations in August 2022. In March this year, the government put forward regulating exchanges under current financial legislation.
These moves to regulate are gaining heightened importance ahead of a federal election set for May 3, demonstrating how digital currency regulation has become a key political priority in Australia.
Featured image from Gemini Imagen, chart from TradingView
