The Australian Transaction Reports and Analysis Centre has launched two targeted supervisory campaigns into the virtual assets sector, timed to coincide with the commencement of expanded obligations for virtual asset service providers under Australia's revised anti-money laundering legislation. Obligations for most newly classified virtual asset designated services took effect from 31 March 2026. Travel rule requirements and obligations for a further class of virtual asset service providers commence on 1 July 2026. New VASPs must register with AUSTRAC by 29 July 2026.
The expanded obligations arise under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth), as amended by the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2024. Under the amended Act, providers of virtual asset designated services must enrol and register with AUSTRAC, implement an AML/CTF program, conduct customer identification and verification, and report suspicious matters and threshold transaction reports. Australia's new regime adopts the Financial Action Task Force VASP definition, expanding the regulated population beyond the former definition of digital currency exchange businesses. Travel rule requirements appear in Division 6B of the AML/CTF Rules Instrument 2007, with commencement deferred to 1 July 2026.
Cryptocurrency exchanges, custodians, brokers, peer-to-peer platforms, and other virtual asset businesses with a geographical link to Australia must assess whether their services fall within the new VASP definition. Offshore platforms serving Australian customers may be caught where they have a requisite connection to Australia under the Act's geographical scope provisions. Existing digital currency exchange registrants are treated as registered VASPs under transitional provisions in the 2024 amending Act, but must update their AML/CTF programs to reflect the expanded obligations. Operating without registration after 29 July 2026 exposes entities to AUSTRAC enforcement action.
Existing DCE registrants benefit from a deemed registration transitional provision and are not required to re-register by the 29 July 2026 deadline. Some newly classified service types have obligations commencing 1 July 2026 rather than 31 March 2026, where the service fell outside the initial commencement class under the Act. AUSTRAC's registration action register, which lists cancelled and refused registrations, is relevant for counterparty due diligence assessments.
Licentium advises crypto exchanges, custodians, and fintech businesses on AUSTRAC registration, AML/CTF program design, and cross-border compliance for virtual asset service providers. Our partner network includes Australian AML specialists experienced in AUSTRAC supervisory processes and travel rule implementation. Work we undertake includes: VASP AML/CTF program documentation, AUSTRAC registration and re-registration, travel rule compliance design, AUSTRAC supervisory response, and cross-border AML regulatory mapping.
Source: AUSTRAC, AUSTRAC Steps Up Supervision of Virtual Assets Sector as Reforms Take Effect, 2026