Australia, EU Expand Crypto Regulations Targeting Money Laundering Risks

Both Australia and the European Union are intensifying regulatory oversight on cryptocurrency firms to combat money laundering and terrorist financing risks. Australia's financial intelligence agency, AUSTRAC, has declared crypto a top threat and is expanding anti-money laundering laws to cover approximately 80,000 new businesses, including digital currency exchanges, with new compliance deadlines set for 2026. In Europe, the newly operational Anti-Money Laundering Authority (AMLA) is prioritizing crypto-asset service providers under the Markets in Crypto-Assets Regulation (MiCA), emphasizing the need for strong protections and consistent enforcement across all 27 EU member states. AMLA chair Bruna Szego highlighted risks from fragmented regulatory approaches and stressed the importance of identifying beneficial owners of crypto firms to prevent illicit activities. Both regulators underscore that these measures are necessary due to the cross-border nature and anonymity features of crypto transactions, which heighten financial crime risks. Industry leaders have welcomed the increased clarity but remain concerned about implementation timelines and potential banking access challenges for crypto companies.