Australia to Enforce Crypto Travel Rule From July 1, Mandating Recipient Data for All Transfers

Australia will begin enforcing its crypto travel rule on July 1, requiring users of regulated domestic exchanges to submit the recipient’s name and platform information for all virtual-asset transfers.

Cointelegraph reported on June 30 that AUSTRAC, Australia’s financial intelligence agency, will start applying the rule from that date. The move brings Australia into line with jurisdictions including the European Union, the US and the UK, which have already adopted the travel rule. The regulation was first applied to virtual assets in 2019 by the Financial Action Task Force to help prevent money laundering, terrorist financing and fraud.

Australia’s travel rule applies to transactions of any size, with no minimum threshold. That differs from the US, where information collection is required only for transfers above $3,000. As in France, the Netherlands and Japan, disclosures will be required regardless of transaction amount. Transfers to self-custodied addresses, including cold-storage wallets, will also require users to verify and report ownership of the wallet.

Gabi Lewis, head of fraud and financial crime at Swyftx, said the practical impact on most exchange users would be limited. Once the required information is entered, it will be saved automatically for future transactions. Lewis added that the travel rule is not unique to crypto and is already in use across financial services in countries including Singapore, the US, New Zealand and the UK.

Some exchanges have already moved ahead with the rule. Kraken began applying the procedures on March 31, while CoinJar started on June 30.

Reaction in online communities was mixed. Some users said the rule had effectively made anonymous transfers impossible and that they were considering moving assets to cold storage. Others argued that regulated platforms were never anonymous to begin with.