Melbourne-based cryptocurrency exchange Cointree has been fined $75,120 by Australia’s financial intelligence agency, AUSTRAC, for late submissions of suspicious matter reports.
Cointree's Financial Violations
AUSTRAC imposed the fine after Cointree voluntarily disclosed lapses in its reporting obligations. The regulator noted that the exchange is taking active steps to improve its internal systems and controls.
AUSTRAC's Warning on the Importance of Timely Reporting
AUSTRAC CEO Brendan Thomas emphasized the critical importance of swift reporting. "We need to take action on these reports as soon as possible. They allow us to move quickly and inform our partners about suspected criminal conduct," he stated. He added that delays complicate law enforcement's ability to effectively respond to new threats.
Increased Regulation of the Crypto Industry in Australia
The fine against Cointree is part of AUSTRAC's broader efforts to enhance regulation in the digital currency sector. In 2024 alone, the agency initiated enforcement actions against 13 crypto companies and issued compliance warnings to over 50 others. Issues surrounding dormant digital currency exchanges are also being addressed, warning inactive providers to either resume operations or voluntarily withdraw their licenses.
Thus, Cointree's fine reflects the growing regulatory pressure on the crypto industry in Australia, which may ultimately lead to increased transparency and trust in the sector.
