Cointree Fined by AUSTRAC Over SMR Delays in 2025

Cointree fined by AUSTRAC — a headline making waves across the Australian crypto landscape in 2025. AUSTRAC, the country’s top financial intelligence agency, slapped Melbourne-based crypto exchange Cointree with a A$75,120 fine. The reason? Failure to submit Suspicious Matter Reports (SMRs) within the mandatory timeframe.

Why does this matter? Because in 2025, regulatory oversight in crypto is no longer optional — it’s essential. And this move signals that AUSTRAC is tightening its grip on digital currency exchanges that fall short on compliance.

Top 3 Highlights

• AUSTRAC fines Cointree A$75,120 for late reporting of Suspicious Matter Reports (SMRs).

• The penalty highlights growing enforcement in Australia’s crypto sector.

• Cointree has paid the fine and is strengthening its compliance framework.

What is Cointree’s AUSTRAC Fine About?

Cointree, a well-known Australian crypto exchange, recently came under fire for breaching the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The violation? Missing deadlines for submitting Suspicious Matter Reports.

SMRs are critical for flagging potentially illicit transactions. According to AUSTRAC regulations:

• SMRs must be filed within three business days if money laundering is suspected.

• If it involves terrorism financing, the window drops to 24 hours.

In Cointree’s case, internal workflow gaps led to delays in filing — a problem they voluntarily disclosed. But AUSTRAC didn’t let that slide.

Why Cointree’s AUSTRAC Fine Matters in 2025

1. Stricter Crypto Oversight in Australia

AUSTRAC is making it clear: crypto platforms are no longer in a regulatory gray zone. In 2024 alone, the agency took action against 13 crypto companies and issued over 50 compliance warnings.

Cointree’s fine isn’t isolated — it’s part of a broader crackdown on non-compliant exchanges under the AUSTRAC crypto regulations umbrella.

2. Investor Confidence at Stake

Delays in SMR submissions can allow suspicious activities to go unnoticed. That’s bad news for both the market and users. This fine reinforces the message that compliance equals credibility.

3. Setting a Precedent

With AUSTRAC’s firm stance, exchanges are now racing to tighten their AML and compliance protocols. It’s a clear warning: those who lag behind risk heavy fines — or worse.

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Top Insights from the Cointree Case

AUSTRAC’s Response

AUSTRAC acknowledged Cointree’s transparency and cooperation, which softened the blow. But they emphasized that timely reporting is non-negotiable for protecting the financial system.

Cointree’s Remedial Measures

Post-fine, Cointree has fully paid the penalty and is enhancing its internal systems. They’re investing in better workflows to ensure no more SMR non-compliance incidents in the future.

What to Watch Next for Crypto Exchanges

If you’re a user or founder of a crypto exchange in Australia, this case is your wake-up call.

• Ensure your exchange files SMRs on time.

• Regularly audit your AML systems.

• Follow AUSTRAC enforcement updates closely.

Conclusion

The news of Cointree fined by AUSTRAC is more than just a headline — it’s a turning point in Australia’s crypto compliance journey. With regulators stepping up enforcement and crypto becoming more mainstream, staying ahead of the rules is non-negotiable.

Whether you’re a trader, investor, or exchange operator, now’s the time to prioritize security, trust, and regulation.

Frequently Asked Questions:

1. Why was Cointree fined by AUSTRAC?
   Cointree was fined AUD 75,000 for failing to submit Suspicious Matter Reports (SMRs) within the legal timeframe required under Australian law.

2. What are Suspicious Matter Reports (SMRs) in crypto compliance?
   SMRs are mandatory reports filed by financial institutions when they detect suspicious activity potentially related to money laundering or terrorism financing.

3. How does AUSTRAC regulate crypto exchanges in Australia?
   AUSTRAC enforces anti-money laundering (AML) and counter-terrorism financing (CTF) laws, requiring crypto exchanges to monitor and report suspicious transactions.

4. Is Cointree still operating after the AUSTRAC fine?
   Yes, Cointree continues to operate and has taken steps to improve its compliance systems to avoid future violations.

5. What does the AUSTRAC fine mean for other crypto exchanges in Australia?
   It signals a warning that stricter enforcement is coming, and all crypto platforms must enhance their AML/CTF reporting systems to avoid penalties.