Australia’s financial intelligence agency, AUSTRAC, has issued a $75,120 fine to Melbourne-based crypto exchange Cointree for failing to submit suspicious matter reports (SMRs) within the required timeframe. The penalty is part of AUSTRAC’s intensified efforts to enforce anti-money laundering (AML) compliance across the digital currency exchange (DCE) sector.
The enforcement action followed Cointree’s voluntary disclosure of delays in meeting its reporting obligations. Under Australian law, regulated entities must file SMRs within three business days when they suspect money laundering, or within 24 hours in cases involving terrorism financing.
AUSTRAC CEO Brendan Thomas emphasized the importance of timely reporting, stating that delays “hinder law enforcement’s ability to act quickly on emerging threats.” He noted that strict timeframes are in place to ensure rapid response and collaboration with law enforcement partners.
Despite the breach, AUSTRAC acknowledged Cointree’s full cooperation and proactive steps to strengthen its compliance systems. “Cointree self-reported the issue and is working to remediate its systems and controls,” Thomas added. Without such cooperation, AUSTRAC indicated that the regulatory consequences could have been more severe.
The penalty against Cointree comes amid AUSTRAC’s broader crackdown on the digital asset industry. In 2024, the regulator highlighted several inherent risks in the sector—including pseudonymity, global reach, and transaction speed—that make it susceptible to criminal exploitation. Since then, AUSTRAC has launched enforcement actions against 13 crypto businesses and issued warnings to over 50 others regarding potential compliance failures.
The agency has also moved to clean up the regulatory landscape, warning inactive DCEs to either reactivate their services or surrender their registrations voluntarily. A public registry of active and compliant providers is expected to be launched soon.
This regulatory tightening coincides with broader reforms in Australia’s approach to digital assets. Last week, the government appointed Andrew Charlton as Assistant Minister for Science, Technology, and the Digital Economy—part of a broader push to modernize crypto regulations and enhance oversight of the fast-growing digital economy.
Cointree has not yet issued a public response to the fine.
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