The Australian government installed a regulation, which forces cryptocurrency exchanges to comply to anti-money laundering laws, according to a statement released by the State government, on April 3.
According to the Australian Transaction Reports and Analysis Centre (AUSTRAC), cryptocurrency exchanges have the obligation to register with authorities and follow other security procedures concerning identity.
The written statement explains that “DCE businesses are required to meet AML/CTF obligations, including:
- adopting and maintaining an AML/CTF program to identify, mitigate and manage money laundering and terrorism financing risks
- identifying and verifying the identities of their customers
- reporting to AUSTRAC suspicious matters, and transactions involving physical currency of $10,000 or more
- keeping certain records for seven years.”
Australian autorities took this decision because they want to solve two major security concerns regarding cryptocurrency exchanges: identity management and taxation.
The authorities will be more permissive during the first six months. By May 14 2018, “existing businesses providing DCE services will need to register.”
“During that period, the AUSTRAC CEO can only take enforcement action if a DCE business fails to take reasonable steps to comply,” mentioned authorities.