Cointree Penalized for Reporting Failures
Cointree, a cryptocurrency exchange located in Melbourne, has been penalized $75,120 by Australia’s financial intelligence body for not submitting suspicious activity reports (SARs) on time. The penalty comes from the Australian Transaction Reports and Analysis Centre (AUSTRAC), which acted upon the exchange’s own admission that it had failed to meet deadlines related to anti-money laundering (AML) reporting.
The agency stated that SARs are critical for identifying and preventing criminal activities, such as money laundering and terrorism financing, and delays in filing these reports impede law enforcement’s ability to address potential threats swiftly.
“Timely action on these reports is essential. The specified timeframes enable quick responses and alerting partners to potential criminal activities,”
Regulatory Compliance and Future Actions
Regulated entities are mandated to submit SARs within three business days upon suspicion of money laundering and within a 24-hour period for suspected terrorism financing. Thomas also noted Cointree’s full cooperation during the investigation, including its proactive approach to correcting the oversights in its reporting systems.
Had Cointree not demonstrated such compliance, AUSTRAC indicated that the repercussions might have been more severe. While the company has not yet publicly addressed this incident, AUSTRAC continues to strengthen regulations in Australia’s digital currency exchange industry to mitigate risks associated with misuse.
In its 2024 analysis, AUSTRAC highlighted concerns regarding the inherent attributes of cryptocurrencies, such as their pseudonymous nature, speed of transactions, and global accessibility, which complicate criminal activity oversight.
The agency has already initiated enforcement actions against 13 cryptocurrency businesses, advising over 50 others on possible compliance issues. Recently, AUSTRAC has also focused on the registration status of digital currency exchanges, urging dormant firms to either remain active or voluntarily withdraw to avoid cancellation.
Future Regulation Changes
Looking ahead, the Australian government is modernizing its approach to cryptocurrency regulation, exemplified by the recent appointment of Andrew Charlton as the Assistant Minister for Science, Technology, and the Digital Economy, reflecting a commitment to enhancing governance in the digital asset landscape.
