Activities requiring an AUSTRAC DCE license include:

  • Online exchanges where cryptocurrency is exchanged for AUD or other fiat currencies and vice versa.

  • OTC services serving large or institutional clients.

  • Crypto ATMs that allow users to deposit cash and receive cryptocurrency or vice versa.

The company Gofaizen & Sherle provides full support for obtaining an AUSTRAC license – from business model assessment and document preparation to company registration and post-licensing support. We offer a turnkey solution, including AML/CTF policy, banking support, and legal expertise. Drawing on our international experience, we help you build a legal and sustainable crypto business in Australia.



What is AUSTRAC

AUSTRAC (Australian Transaction Reports and Analysis Centre) is an Australian financial intelligence agency responsible for monitoring financial flows and preventing their use for criminal purposes. It has been operating since 1989 and plays a key role in ensuring the transparency of the country’s financial sector, including the cryptocurrency industry.

Under Australian law, AUSTRAC is responsible for registering companies with a high level of financial risk, including digital currency exchange service providers (DCEs). Since 2018, such companies have been required to undergo full AUSTRAC registration and build processes in line with AML/CTF standards. This includes developing internal policies, customer identification (KYC), transaction monitoring, and regular reporting.

It is important to understand that AUSTRAC does not issue licenses in the traditional sense, as ASIC does. Instead, it operates within the framework of anti-crime legislation and strictly monitors compliance with all requirements. In the event of violations, the regulator may suspend or revoke an AUSTRAC digital currency exchange license, as well as initiate an investigation or refer the matter to law enforcement agencies.

AUSTRAC is responsible for the following tasks:

  • Registration of digital currency exchange (DCE) service providers;

  • Ensuring compliance with AML/CTF requirements. With the right to suspend or revoke registration if violations are detected.

  • Interacting with law enforcement agencies in cases of suspected money laundering or terrorist financing.


AUSTRAC registration for DCE

AUSTRAC registration is a mandatory requirement for companies that provide digital currency exchange services in Australia. It confirms that the company’s internal processes comply with anti-money laundering and counter-terrorist financing standards.

Before applying, you must prepare a specific set of documents and follow established procedures that demonstrate how the company manages potential risks and how it interacts with customers and transactions.

  • Identification of potential threats and characteristics of the business model and target audience.

  • Know your customer (KYC) procedure, including the collection of necessary information.

  • Internal control rules and procedures for detecting suspicious activities.

  • Maintaining control over transactions and updating customer data according to schedule.

  • Appointment of a coordinator to monitor compliance with AUSTRAC requirements.

  • Training system for employees involved in work processes.

Once all these elements are in place, a comprehensive anti-money laundering and counter-terrorist financing (AML/CTF) program is created. Its content should be tailored to the individual needs of the company, rather than simply copied from a template. Only then will it be possible to register as a DCE with AUSTRAC and obtain official registration.

Being registered as a DCE with AUSTRAC indicates that the company has not only declared its activities, but has also integrated regulatory requirements into its daily work practices.

The team of experts at Gofaizen & Sherle provides support at every stage and assists with preparing documentation, adapting it to business processes, and ensuring successful registration without unnecessary delays or application rejections.

Post-registration obligations AUSTRAC license

  • After obtaining an AUSTRAC license, the company remains under the supervision of the regulator and must continuously demonstrate compliance with the established requirements. Documents and internal processes must be regularly reviewed and implemented in practice.
    Key post-registration obligations:

  • 1.

    Maintaining an AML/CTF program. Policies are updated when the business model, customer service channels, or geography of operations change.

  • 2.

    Customer verification (KYC). Customer data is periodically updated, the origin of funds is analyzed, and high-risk groups are identified.

  • 3.

    Transaction monitoring. All transactions are tracked, suspicious transactions are reported in SMR reports, and transactions exceeding the threshold are recorded in TTR reports.

  • 4.

    Data storage. Records of customers, transactions, internal audits, and staff training must be kept for a specified period.

  • 5.

    Staff training. Employees undergo regular training to keep them up to date with the latest requirements.

  • 6.

    Independent verification. The AML/CTF program is periodically audited to assess its effectiveness.

  • AUSTRAC registration confirms the company’s commitment to ongoing compliance with these obligations. The regulator has the right to request documents, conduct inspections, or require updates to procedures. Violations of the rules result in fines, restrictions on operations, and even revocation of registration.


Conclusion

AUSTRAC registration allows you to operate legally in the Australian digital asset market, but requires ongoing compliance with certain obligations. In addition to preparing documents and obtaining status, it is important to maintain the established requirements: update the AML/CTF program, conduct customer verification, monitor transactions, and be prepared for regulatory audits to reduce the risk of penalties and maintain trust in the business.

Gofaizen & Sherle helps you navigate this entire process, from program development and registration to ongoing support for your company. With proper compliance, AUSTRAC becomes an integrated part of running a compliant and sustainable business.



FAQ about Fintech Law Firm

  • What is AUSTRAC and what is its role in DCE regulation?

    AUSTRAC is an Australian financial intelligence agency that oversees anti-money laundering and counter-terrorist financing measures. It regulates crypto exchanges, requiring registration and compliance with regulations to obtain AUSTRAC registration as a DCE.

  • What is DCE?

    Digital Currency Exchange (DCE) is a platform where customers can buy, sell, or exchange cryptocurrency for fiat currency. In Australia, such companies must register with AUSTRAC and obtain an AUSTRAC DCE license to operate legally.

  • How long does it take to register a DCE with AUSTRAC?

    Registration usually takes from a few weeks to 3 months. The timeframe depends on the readiness of AML/CTF documents and data verification. Once approved, the company receives an AUSTRAC digital currency exchange license and can start operating.

  • What responsibilities arise after successful registration with AUSTRAC?

    The company is required to maintain an AML/CTF program, update customer data, monitor transactions, and report suspicious transactions. Failure to comply with the rules will result in fines and the risk of losing registration.

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