Melbourne-based cryptocurrency exchange Cointree has been fined $75,120 by Australia’s financial intelligence agency, AUSTRAC, for failing to submit suspicious matter reports (SMRs) on time. This fine comes amid a broader crackdown by regulators aiming to reinforce anti-money laundering compliance within the growing digital asset sector. According to AUSTRAC, the fine

• Cointree fined $75K for late suspicious activity reports.
• AUSTRAC says timely filing is critical to crime prevention.
• The crypto sector faces growing regulatory pressure in Australia.

Melbourne-based cryptocurrency exchange Cointree has been fined $75,120 by Australia’s financial intelligence agency, AUSTRAC, for failing to submit suspicious matter reports (SMRs) on time. This fine comes amid a broader crackdown by regulators aiming to reinforce anti-money laundering compliance within the growing digital asset sector.

According to AUSTRAC, the fine followed voluntary disclosure by Cointree, which admitted to lapses in meeting its mandatory reporting obligations. The agency noted that the crypto exchange is now taking active steps to improve internal systems and controls.

SMRs are essential filings that all regulated financial entities in Australia must submit when they suspect a transaction may be linked to money laundering or terrorism financing. The requirement is clear: submit within three business days for suspected money laundering, and within 24 hours for suspected terrorism-related activity.

AUSTRAC’s Warning: Act Fast or Face Penalties

AUSTRAC CEO Brendan Thomas emphasized the importance of swift reporting.

“We need to take action on these reports as soon as possible. They allow us to move with pace and alert our partners to suspected criminal conduct,” he stated.

The delay, AUSTRAC said, exacerbated the difficulty for law enforcement to react effectively to new threats. Despite this, the agency recognized Cointree’s cooperation, transparency, and self-reporting, which lessened the seriousness of the penalty. 

Without such openness, regulatory consequences could have been more severe. Cointree has not yet commented publicly on the fine. However, AUSTRAC confirmed that the company is working to remediate its compliance framework to prevent similar incidents in the future.

Crypto Oversight Tightens in Australia

This move is part of AUSTRAC’s overall effort to increase regulation in the digital currency environment. In 2024 alone, the agency initiated enforcement action against 13 crypto companies and sent compliance warnings to more than 50 others.

AUSTRAC has highlighted vulnerabilities in the sector, including the pseudonymous nature of transactions, global accessibility, and speed of digital transfers, all factors that make the space appealing to bad actors.

The agency is also addressing issues like dormant digital currency exchange registrations, warning inactive providers to either operate actively or voluntarily withdraw their licenses.

In a major regulatory step, the Australian government recently appointed Andrew Charlton as Assistant Minister for Science, Technology, and the Digital Economy, signaling its intention to move crypto regulations into the modern era and increase oversight of the fast-developing industry.

A public registry of registered crypto service providers is expected to go live soon, increasing transparency and public trust.

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