According to a report by the Australian Financial Crimes Exchange (AFCX), criminals and con artists routed millions in stolen funds through cryptocurrency exchanges and trading venues.

Experts and regulators in the industry advocate collaboration between banks and exchanges to combat fraudsters' operations.

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During the last 30 days of Australia's fiscal year, from July 1 to June 30, the following year, 47% of all misappropriated funds were transferred to bank accounts associated with digital asset businesses.

David Pegley, managing director of the AFCX, remarked that recuperating funds laundered via cryptocurrency exchanges proved "extremely difficult," resulting in increased losses for Australians. Anna Bligh, chief executive officer of the Australian Banking Association, echoed the remark.

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Bligh also advocated for policies that isolate cryptocurrency as a conduit for money laundering. She proposed legislation that would impose a transfer limit on the bank accounts of cryptocurrency exchanges and digital asset operators.

De-banking cryptocurrencies The nation of Australia

The AFCX's report coincides with an effort to de-bank crypto exchanges like Binance, which is under regulatory scrutiny in multiple jurisdictions, including the United States. Binance has suspended deposits in Australian Dollars (AUD), citing issues with a third-party payment processor.

According to reports, major institutions such as National Australia Bank blocked remittances to "high-risk exchanges" in June 2023.

Blockchain Australia, a blockchain advocacy organization, applauded efforts to counteract scamming, but argued that this should be done without limiting crypto users' access to local banking services. Blockchain Australia has previously opposed restrictions imposed on cryptocurrency payments.

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"Consumer protection is of the utmost importance, both in terms of protection against scams and in terms of not burdening consumers with undue restrictions in who they choose to do business with. These restrictions must be evidence-based to ensure that they bring genuine benefits without undue costs."

Australian Blockchain Association