Australian Regulator Flags Crypto as Top Threat in Financial Crime Crackdown

Key Points

1. The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced an ambitious update to anti-money laundering laws, targeting sectors with the highest risk of harm.

2. Approximately 80,000 new businesses, including digital asset firms, will be subject to these expanded regulations.

3. Current reporting entities must comply with new obligations by March 31, 2026, while tranche 2 entities have until July 1, 2026.

4. The regulatory changes aim to address risks posed by digital assets and cross-border transactions, with AUSTRAC emphasizing enforcement in high-risk areas.

5. Australia's Project Acacia is piloting real-money transactions using central bank digital currency (CBDC) and stablecoins, with findings expected in Q1 2026.