AUSTRAC Slaps Cointree with $75K Fine for Late Suspicious Activity Filings

Australia’s financial watchdog AUSTRAC has penalized cryptocurrency exchange Cointree AUD$75,000 for delayed reporting of suspicious transactions—proving regulators are watching the crypto space like hawks (when they’re not busy missing the bigger fish).

The enforcement action highlights growing compliance pressures on digital asset platforms as authorities demand real-time risk monitoring. Cointree’s case involved multiple late filings between 2019-2022, with some reports delayed by over a year—hardly the "instant settlement" crypto loves to advertise.

While the fine amounts to pocket change for most exchanges, it serves as another warning shot: the era of crypto’s regulatory free-for-all is over. Now watch as the industry pivots to touting "compliant DeFi" solutions with the same enthusiasm it once reserved for dodging oversight.

TLDR

• Cointree fined $75K for late SMRs.
• Cointree paid fine, fixing compliance.
• AUSTRAC warns: late SMRs hinder action.
• 50+ crypto exchanges under review.
• Stricter crypto rules coming 2026.

AUSTRAC has issued a $75,120 infringement notice to Cointree Pty Ltd for breaching reporting timeframes under the AML/CTF Act. The digital currency exchange provider failed to submit suspicious matter reports (SMRs) within the legally required deadlines. AUSTRAC stated the late submissions limited its ability to act quickly against potential criminal activity.

Cointree voluntarily disclosed the failures and has since paid the penalty in full, concluding the matter. However, AUSTRAC emphasized that this payment does not imply an admission of liability by the company. The regulator confirmed Cointree is currently working to strengthen its internal compliance systems.

According to AUSTRAC, SMRs FORM a key part of the financial intelligence framework supporting law enforcement investigations. Delayed submissions reduce the agency’s ability to respond to threats such as money laundering and terrorism financing. The breach triggered enforcement action despite the company’s cooperation and self-reporting.

AUSTRAC Flags Cointree’s Reporting Delays as Serious Breach

AUSTRAC requires SMRs to be submitted within three business days for suspected money laundering and within 24 hours for terrorism-related matters. In Cointree’s case, the exchange missed these deadlines, prompting a regulatory response. The agency said timely SMR submission is essential to disrupting illicit activity quickly.

Cointree cooperated fully with AUSTRAC throughout the process and acknowledged the gaps in its reporting systems. The exchange has taken steps to improve its compliance framework to avoid future lapses.

AUSTRAC underlined that such enforcement actions send a message to all reporting entities in the digital asset space. The agency expects businesses to have systems that support timely, accurate, and complete SMR submissions. AUSTRAC continues to stress the importance of real-time compliance in the fight against financial crime.

Digital Currency Sector Remains Under Heightened Oversight

AUSTRAC continues to monitor the digital currency exchange (DCE) sector due to its growing vulnerability to financial crime risks. The sector’s rapid transaction speed, global access, and pseudonymity pose consistent regulatory challenges. AUSTRAC views DCE compliance as a critical area for regulatory focus throughout 2025.

A 2024 AUSTRAC risk assessment identified over 50 digital exchanges as potentially noncompliant, with 13 already facing enforcement actions. The agency aims to ensure that all active DCEs are registered and operate with robust AML/CTF measures. Dormant exchanges have also come under review due to their potential misuse by criminal networks.

In its broader crackdown, AUSTRAC is actively contacting inactive exchanges and warning them to deregister or face forced removal. Registered DCEs must maintain updated business information and confirm active status. AUSTRAC clarified that non-operational platforms create unacceptable risk in the digital financial system.

AUSTRAC Tightens Rules as Crypto Sector Evolves

AUSTRAC is preparing for stricter digital asset regulations set to begin in March 2026, including mandatory registration for crypto platforms. The agency said tighter rules will improve monitoring and ensure platforms cannot be used to hide or move illicit funds. These changes aim to align the sector with broader financial system standards.

The Australian government is supports AUSTRAC’s efforts by appointing new leadership in digital economy oversight. The updated rules will force all crypto-related entities, including ATM providers, to comply with formal registration and reporting protocols. AUSTRAC expects these reforms to close gaps exploited by bad actors.

In the meantime, AUSTRAC maintains a proactive enforcement posture across the crypto space. The agency warned that failure to meet SMR deadlines may signal deeper compliance issues within a business. AUSTRAC reiterated its commitment to disrupting criminal activity and safeguarding Australia’s financial system from emerging threats.