Yesterday, on April 3, the Australian Transactions and Reporting Analysis Centre (AUSTRAC) released new regulatory guidelines on how cryptocurrency exchanges are allowed to operate. Among the key highlights of the rules, crypto exchanges must have a comprehensive AML, CTF, and KYC program in place, notify authorities of transactions surpassing 10 000 AUD ($7 700), and keep customer records for seven years.
The authority said a new «policy principles» period will kick in for six months starting on April 3, wherein the chief executive of AUSTRAC will have the authority to take action against crypto exchanges if the operator doesn’t take «reasonable steps» to comply with the requirements.
Existing crypto exchange operators should enroll on the «Digital Currency Exchange Register», maintained by AUSTRAC, by May 14, 2018. AUSTRAC is establishing transitional registration arrangements to enable existing operators to continue their businesses while their applications are being screened.
«There will be criminal offence and civil penalty consequences if you provide digital currency exchange services without being registered», – the authority added.