Alchemy Pay Officially Registers with AUSTRAC, Set to Offer Fiat-to-Crypto Services in Australia

Alchemy Pay has officially registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), giving it the authority to operate as a Digital Currency Exchange

Fintech company Alchemy Pay has secured registration with the Australian Transaction Reports and Analysis Centre (AUSTRAC), allowing it to legally operate a digital currency exchange in the country. This approval will enable Alchemy Pay to provide services for converting fiat currency into cryptocurrency and vice versa, expanding crypto payments options for Australian users.

According to the team, obtaining the registration further enhances Alchemy Pay’s standing as a trusted fintech provider while ensuring compliance with Australian regulations for anti-money laundering (AML) and counter-terrorism financing (CTF). The approval also positions Alchemy Pay alongside major industry players like Kraken, which operates under similar regulations.

Ailona Tsik, CMO at Alchemy Pay, highlighted the company’s focus on creating a secure and compliant bridge between traditional finance and the crypto world. She added that Alchemy Pay is excited to deliver its services to Australian users while prioritizing adherence to regulations, fostering trust, and managing risks effectively in the region.

“Our mission is to build a robust and compliant infrastructure that connects the traditional financial system with the decentralized crypto economy. We’re excited to bring our services directly to Australian users, committing to regulatory engagement for legal compliance, stakeholder trust-building, and effective risk management in Australia,” Tsik noted.

AUSTRAC Ramps Up Oversight of Crypto ATM Providers

In December 2023, AUSTRAC released a report stating that it is intensifying its oversight of cryptocurrency ATM providers in Australia to ensure compliance with its anti-money laundering regulations. The regulatory body cited the high risk of money laundering, scams, and fraudulent activities linked to digital currency. As a result, it has created a specialized task force to monitor digital currency exchanges offering ATM services.

Under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006, digital currency exchanges, including those with crypto ATMs, must register with AUSTRAC. They are required to monitor transactions, verify customers’ identities (KYC), report suspicious activities, and report cash transactions over $10,000. Crypto ATMs operators who fail to follow rules to verify customers, report suspicious activity, and address risks could face legal consequences.

AUSTRAC CEO Brendan Thomas described the development as the first step in minimizing cryptocurrency usage for fraudulent activities in Australia. He said the agency will pay more attention to the crypto industry this year.

Top crypto providers such as MoonPay registered with the Australian Transaction Reports and Analysis Centre last September to operate as a digital currency exchange in Australia.