AUSTRAC accepts legal advice that Zucoins L.P. is meeting its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act).
On 8 July 2022, AUSTRAC wrote to Zucoins L.P. stating that AUSTRAC had obtained information (from an unknown source), that Zucoins L.P. maybe providing digital currency exchange (DCE) services and may therefore need to be enrolled as a reporting entity and registered as a digital currency exchange under Item 50A in Table 1 in section 6(2) of the AML/CTF Act (Item 50A).
AUSTRAC specifically noted the information provided by Zucoins L.P. on the www.zucoins.com website advertising the sale of Zucoins digital currency via bank transfer and wanted Zucoins L.P. to provide written reasons as to why it considered its’ business not to be a reporting entity for the purposes of the AML/CTF Act.
Unregistered DCE’s are subject to criminal charges and financial penalties.
On 4 August 2022, Zucoins L.P. provided AUSTRAC with legal advice from Cornwalls outlining the legal proposition that Zucoins L.P. is most likely not providing DCE services specified in Item 50A.
On 18 August 2022, AUSTRAC officially advised Zucoins L.P by email that AUSTRAC accepted the views outlined by Cornwalls.
Zucoins L.P. is therefore meeting its obligations under the AML/CTF Act and is:
- Not providing a designated DCE service specified in Item 50A of the AML/CTF Act.
- Not in breach of section 76A of the AML/CTF Act.
- Not considered to be a reporting entity for the purposes of the AML/CTF Act.
Great news from AUSTRAC!