Australia’s Crypto Travel Rule Takes Effect in July
New regulations require crypto exchanges in Australia to collect and share customer data on transfers from July.
From July, Australian crypto exchanges must implement the country’s version of the Financial Action Task Force’s (FATF) travel rule, requiring them to collect and transmit originator and beneficiary information for all outgoing and incoming transfers.
The rule applies to transactions above a certain threshold, which has not yet been specified by Australian regulators. Exchanges will need to verify the identity of both sender and receiver and share that data with counterparties.
Implementation timeline
The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced the updated AML/CTF rules in late 2023, giving exchanges a six-month transition period. The deadline falls in July 2024, after which non-compliant platforms may face penalties.
- Exchanges must collect customer names, addresses, and transaction details.
- Data sharing applies to both domestic and cross-border crypto transfers.
- The rule is part of Australia’s efforts to align with international anti-money laundering standards.