The Australian Transaction Reports and Analysis Centre (AUSTRAC) has unveiled its latest awareness campaign, dubbed “Use It or Lose It”, aimed squarely at users and operators of digital currency exchanges (DCEs). The campaign, launched in April 2025, encourages exchanges to proactively manage dormant cryptocurrency accounts that could otherwise be exploited for illicit financial activity.
Tackling Dormant Account Risks
AUSTRAC’s central concern stems from the fact that dormant or inactive crypto accounts present a vulnerability within the broader financial ecosystem. Unused accounts, especially those holding digital assets, are at heightened risk of being hijacked or leveraged for money laundering, fraud, and terrorism financing.
The regulator is urging digital currency exchanges to strengthen their customer due diligence (CDD) processes by identifying and closing long-inactive accounts or ensuring they are appropriately monitored for suspicious activity.
This forms part of Australia’s ongoing commitment to meeting the Financial Action Task Force (FATF) standards on anti-money laundering (AML) and counter-terrorism financing (CTF).
Broader Regulatory Context
Since 2018, all Australian-based DCEs have been mandated to register with AUSTRAC and comply with AML/CTF obligations, including customer verification, record-keeping, and transaction reporting. The “Use It or Lose It” initiative signals a further tightening of compliance expectations as the sector matures and as global scrutiny on digital assets intensifies.
According to AUSTRAC Deputy CEO Peter Soros, “The campaign is not about penalizing exchanges but ensuring they adopt best practices that protect both their businesses and their customers.”
Implications for Industry
With Australia emerging as a key player in the Asia-Pacific crypto economy, where over 4 million Australians hold some form of digital asset, exchanges face increasing pressure to uphold robust compliance systems. The new campaign underscores that as innovation accelerates, regulatory vigilance will match pace.
