In brief
- AUSTRAC has fined crypto exchange Cointree for failing to submit suspicious matter reports within required timeframes.
- The exchange self-disclosed the reporting lapses and is taking steps to improve internal compliance systems.
- AUSTRAC CEO Brendan Thomas said timely reports are critical to fighting financial crime and warned non-compliant firms face tougher enforcement.
Australia’s financial intelligence agency has fined Melbourne-based crypto exchange Cointree $75,120 for failing to submit suspicious activity reports within the required timeframe.
The Australian Transaction Reports and Analysis Centre took enforcement action after the crypto exchange voluntarily disclosed delays in meeting its anti-money laundering reporting obligations, according to a statement on Thursday.
SMRs are mandatory filings submitted by regulated entities when they suspect a transaction may be linked to criminal activity such as money laundering or terrorism financing.
AUSTRAC said the delayed reports hindered law enforcement’s ability to act quickly on emerging threats.
“We need to action these reports as soon as possible, which is why the timeframes are put in place – they allow us to move with pace and alert our partners to suspected criminal conduct, AUSTRAC CEO Brendan Thomas said in the statement.
Entities are required to file SMRs within three business days of suspecting money laundering or within 24 hours for suspected terrorism financing.
Thomas acknowledged that Cointree cooperated fully, self-reported the issue, and is now “taking proactive steps to remediate its systems and controls.”
Without such cooperation, the agency noted, the regulatory response could have been more severe.
Cointree has not yet responded to Decrypt’s request for comment.
Fighting crime
The fine is part of AUSTRAC’s growing efforts to tighten oversight of Australia’s digital currency exchange sector, which it considers vulnerable to criminal misuse.
In 2024, AUSTRAC identified risks such as pseudonymity, global reach, and speed of transfers as key concerns within the sector.
It has since launched enforcement actions against 13 crypto businesses and warned over 50 others of potential compliance failures.
The regulator recently addressed dormant registrations, warning inactive DCEs to “use it or lose it,” as in face cancellation or withdraw voluntarily. A public registry of registered providers is expected soon.
Amid these moves, last week the Australian government appointed Andrew Charlton as Assistant Minister for Science, Technology, and the Digital Economy, part of a broader push to modernize crypto regulation and strengthen oversight across the digital asset sector.
Edited by Sebastian Sinclair
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