Australia took steps to bring the activity of Digital Currency Exchanges (DCE) under the Anti Money Laundering & Counter-Terrorism Financing (AML/CTF) Act (Act) with effect from April 3, 2018. Consequently, DCE services has been added as a ‘Designated Service’ 50A in the Act. Registered DCEs will be put on AUSTRAC’s DCE Register. Consequently, AML/CTF rules have also been amended.
Following this, Australian entities offering DCE services, as defined, are required to get registered with Australian Transaction Reports & Analysis Centre (AUSTRAC) as a ‘Reporting Entity’ providing ‘Designated Services’ of DCE.
Bit Trade has obtained its registration with AUSTRAC and is a Registered DCE services provider and a Reporting Entity effective April 16, 2018. Consequently, it has established a AML compliance programme in accordance with the regulatory requirements.
The programme requires Bit Trade to conduct KYC for all customers, customer risk assessment and risk rating, enhanced due diligence for certain categories of customers, transaction monitoring, and reporting of certain accounts / transactions. It also requires to verify Beneficial Owners for certain non-individual accounts.
These measures are aimed at helping Bit Trade guard against potential money laundering risks, and thus mitigate reputation, legal, and operational risks.