AUSTRAC Rolls Out VASP Register as Travel Rule Takes Effect

Australia’s financial intelligence agency, AUSTRAC, has opened a public register of virtual asset service providers and confirmed that crypto Travel Rule obligations take effect on 1 July 2026, tightening how exchanges collect and share customer identity data. The reforms replace the country’s older digital currency exchange regime with a broader virtual asset framework that brings more crypto activities under anti-money-laundering supervision.

AUSTRAC now maintains and publishes a register of virtual asset service providers, allowing consumers and counterparties to check whether a business is legitimately registered before using it, according to AUSTRAC’s guidance. Providing virtual asset services in Australia without registration is illegal. New providers could begin enrolling and registering from 31 March 2026, with the deadline to complete enrolment and registration set for 29 July 2026.

AUSTRAC has replaced its “digital currency exchange” terminology with the language of “virtual assets” and “virtual asset service providers,” according to the agency. The practical effect is broader: activities beyond simple fiat-to-crypto exchange now fall within AML/CTF regulation, including virtual asset-to-virtual asset exchange, safekeeping and custody services, and accepting instructions to transfer virtual assets on behalf of customers. The changes align Australia’s regime with Financial Action Task Force recommendations for the virtual asset sector.

From 1 July 2026, providers must collect, verify, and where applicable share originator and beneficiary information when moving crypto on behalf of customers, mirroring the data that accompanies international bank wires. The requirement exposes a common weakness: transfer data is only as trustworthy as the identity verification behind it. If a provider onboards customers with weak or forged identity documents, the originator and beneficiary details passed along a transfer chain inherit that same unreliability, and higher-risk transfers involving self-hosted wallets compound the problem.

Providers registering with AUSTRAC now need onboarding systems that verify customer identity at scale and attach reliable identity data to every transfer the Travel Rule covers. That means document authentication, biometric checks, and sanctions screening that work across borders and withstand regulatory scrutiny. Shufti’s identity verification and KYC solutions verify customers across 240+ countries and territories, combining document verification with face verification and AML screening so the originator and beneficiary data moving along a transfer chain is tied to a confirmed identity. Crypto businesses preparing for the 1 July deadline can explore Shufti’s KYC solution or request a demo.