Australian Crypto Exchange Cointree Fined Over Delayed Suspicious Activity Reports

Australia Fines Crypto Exchange Cointree for Late Reporting

Australia’s financial watchdog, AUSTRAC, has fined the Melbourne-based crypto exchange Cointree $75,120. The reason? Cointree was late in sending reports about suspicious activities.

AUSTRAC found out about the delay after Cointree itself reported the problem. These reports, called Suspicious Matter Reports (SMRs), are important because they help the authorities spot and stop crimes like money laundering and terrorism funding.

AUSTRAC said the delays made it harder for police and other agencies to act quickly on possible crimes. Brendan Thomas, the AUSTRAC CEO, explained that reports must be sent quickly so law enforcement can respond fast. The rules say these reports should be filed within three business days for suspected money laundering, or within 24 hours if terrorism funding is suspected.

Thomas also said Cointree worked well with AUSTRAC, told them about the issue, and is now fixing its systems to avoid future problems. Without this cooperation, the penalty could have been worse.

Cointree has not yet commented on the fine.

Tougher Rules for Crypto Exchanges

AUSTRAC is increasing its efforts to watch over crypto businesses in Australia because this sector can be used for crime. In 2024, they identified several risks, like users hiding their identity, fast and global money transfers.

Since then, AUSTRAC has taken action against 13 crypto companies and warned over 50 others about breaking rules.

They also reminded inactive crypto businesses to either start operating or lose their registration.

Recently, the Australian government appointed Andrew Charlton as Assistant Minister for Science, Technology, and the Digital Economy. This shows the government wants to improve and update rules for digital currencies and make sure the sector is better controlled.