Use It or Drop It, by American Watchdog, cracks down on Dormant Crypto Exchanges.

The country’s top economic regulator has warned dormant crypto companies to “use it or lose it,” warning that registrations will be suspended as part of a comprehensive crackdown to protect consumers and stop criminal activity.

In a statement released on Monday, the Australian Transaction Reports and Analysis Centre ( AUSTRAC ) announced it is connecting with digital currency exchanges (DCEs ) that appear inactive and is urging them to voluntarily withdraw their registrations or face cancellation.

According to AUSTRAC’s CEO, Brendan Thomas, these firms “pose a high risk” of being” co-opted” by thieves because of the validity associated with AUSTRAC membership.

We’re seeing far too many people fall prey to scams involving digital currency, according to Thomas, “our knowledge shows bitcoin can be used by criminals to funnel money laundering, schemes, and money horse activities.”

According to the speech, AUSTRAC has 427 registered DCEs, but they believe many of them are no longer active.

The financial watchdog intends to make cancellations available online and create a public record to assist customers evaluate reliable providers.

The AUSTRAC CEO vowed to “drive offenders out of this business” by saying that “people should feel confident that they can detect genuine crypto companies that are registered and subject to regulatory oversight.

Many businesses have already had their licenses canceled in recent years due to inactivity or facing debts, including FTX Express Pty Ltd, AccE Australia Pty Ltd, and Oaks Payments Pty Ltd.

According to Thomas,” If a DCE does intend to offer a service, they must call us then, we may withdraw the registration,” adding that businesses can return if” situation modify.”

AUSTRAC’s crypto “blitz”

Following a year-long AUSTRAC investigation that resulted in regulatory actions against 13 crypto companies in February, the “blitz” follows.

The regulator identified over 50 additional businesses under investigation and warned that non-compliant businesses could face deregistration or suspension.

The intense crackdown comes as Australia prepares to hold an election on May 3, with crypto regulation emerging as a hot button.

Australian voters recently received a call from the world’s largest crypto exchange Coinbase to urge them to support candidates who support clear digital asset laws, calling the country’s crypto policy environment “frustratingly vague and underdeveloped.”