All crypto exchanges in Australia must register with AUSTRAC to legally operate. Learn the 2025 requirements, compliance obligations, and what changes in March 2026 - including penalties for non-compliance and how to prepare.
AML/CTF Compliance in Crypto: What It Means and Why It Matters
When you hear AML/CTF compliance, anti-money laundering and counter-terrorist financing rules applied to cryptocurrency transactions. Also known as crypto KYC, it’s the set of rules that exchanges, wallets, and even some DeFi platforms must follow to avoid being shut down by regulators. It’s not just paperwork—it’s the reason some exchanges don’t let you deposit cash, why you have to upload your ID, and why certain coins get delisted overnight.
These rules aren’t new. Banks have followed them for decades. But crypto moved fast, and regulators are now playing catch-up. Countries like the U.S., EU, and Singapore have turned AML/CTF compliance, a legal framework requiring crypto businesses to verify users and monitor transactions. Also known as crypto KYC, it’s the set of rules that exchanges, wallets, and even some DeFi platforms must follow to avoid being shut down by regulators. It’s not just paperwork—it’s the reason some exchanges don’t let you deposit cash, why you have to upload your ID, and why certain coins get delisted overnight.
These rules aren’t new. Banks have followed them for decades. But crypto moved fast, and regulators are now playing catch-up. Countries like the U.S., EU, and Singapore have turned KYC crypto, the process of verifying a user’s identity before allowing crypto transactions. Also known as customer due diligence, it’s the first step in stopping criminals from using digital assets to hide money. into law. That’s why you see exchanges like COINBIG and ARzPaya being reviewed for their lack of user verification. It’s why Iraq’s central bank banned crypto outright—because they couldn’t track it. And it’s why privacy coins like Monero and Zcash are under fire: they make tracing transactions nearly impossible, which directly clashes with blockchain compliance, the practice of aligning decentralized networks with government financial regulations. Also known as regulatory alignment, it’s what separates platforms that survive from those that vanish.
Some projects try to ignore it. Others pretend they’re decentralized enough to be exempt. But the truth is simple: if you’re handling money, you’re being watched. The GMPD airdrop, the ZAM TrillioHeirs NFTs, even the REVV x CoinMarketCap campaign—all had to consider compliance. Who could claim? Where were the tokens sent? Were users verified? If not, they risked being labeled as facilitators of illicit activity. That’s why fake airdrops like Zenith Coin and ORI Orica Token are so dangerous—they don’t just scam you, they could get your wallet flagged.
Malta’s Blockchain Island strategy works because it built compliance into its DNA from day one. It didn’t ban crypto—it made it transparent. That’s why businesses thrive there. Meanwhile, places like Iraq and Iran are forced into extreme measures because they lack control. The real battle isn’t between privacy and surveillance—it’s between freedom and accountability. And right now, accountability is winning.
Below, you’ll find real reviews, breakdowns, and warnings from projects and exchanges that are either adapting to these rules—or getting crushed by them. You’ll see how compliance shapes everything: from exchange security to airdrop eligibility to which coins still trade. This isn’t theory. It’s what’s happening right now.