Austrac crypto Travel Rule - Forcing users to become full-fledged bitcoiners

[noorman0]

AUSTRAC will require all VASPs to implement increased AML checks under the crypto Travel Rule starting July 1st. This aligns with a list of planned cryptocurrency regulatory reforms since 2025, some of which have been in effect since March 31st specifically for legacy service providers.

Detail of AML/CTF policies for virtual asset transfers.
This sounds similar to the practice of local Philippine-based exchanges, where users must go through multiple verification processes for each transfer.

The change has prompted some Bitcoin (BTC) holders to move coins off exchanges early. Reports of withdrawal delays and fresh verification steps have spread through Australian crypto communities ahead of the deadline.

[hugeblack]

All these laws will do is force more people to withdraw their funds and then resort to informal (or at least unlicensed) channels to convert these funds into cash and use the cash to make payments.

This is the perfect environment for money laundering to flourish.

[zasad@]

I asked people who live in Thailand or the Philippines, and they said it's even easier to exchange cryptocurrency there than through regular exchangers in Russia. Although the law is strict, it's not enforced as strictly there as it is in Russia.
And in Russia, law enforcement isn't as strict, so far.

[noorman0]

I asked people who live in Thailand or the Philippines, and they said it's even easier to exchange cryptocurrency there than through regular exchangers in Russia. Although the law is strict, it's not enforced as strictly there as it is in Russia.
And in Russia, law enforcement isn't as strict, so far.

Philippine regulations used to have this practice and seemed quite strict before gradually relaxing due to numerous complaints. At least that's what I gathered. It's unclear whether the policy was actually revoked or simply an initiative of local exchanges who didn't want to lose customers.

[YOSHIE]

Austrac crypto Travel Rule - Forcing users to become full-fledged bitcoiners

I think if Austrac's policies and regulations towards crypto users globally, of course one side is good and on the other hand it is not good, indeed the aim of this bet is legally good to overcome global anti-money laundering and make Bitcoin users true, but measuring in detail all crypto user activity starting from wallet addresses, transactions, names, I think the policy is a little excessive.

For this reason, this rule will have an impact on investors' distrust and will be pressure on them, where initially Bitcoin could not be regulated by third parties, now the opposite is true, of course this situation will trigger the transfer of their crypto assets to other exchanges and there will be storage of their crypto assets independently.

[zasad@]

I asked people who live in Thailand or the Philippines, and they said it's even easier to exchange cryptocurrency there than through regular exchangers in Russia. Although the law is strict, it's not enforced as strictly there as it is in Russia.
And in Russia, law enforcement isn't as strict, so far.

Philippine regulations used to have this practice and seemed quite strict before gradually relaxing due to numerous complaints. At least that's what I gathered. It's unclear whether the policy was actually revoked or simply an initiative of local exchanges who didn't want to lose customers.

AUSTRAC "(Australian Transaction Reports and Analysis Centre) is the Australian Government's financial intelligence service."
If we're talking about the Philippines, you don't necessarily need to use centralized exchanges to exchange for GCash, Maya, or cash. There are plenty of intermediaries and private exchanges available for this purpose.
Any centralized exchange can block your assets, I don't understand why most people use them if they are not traders.

[MarryWithBTC]

All these laws will do is force more people to withdraw their funds and then resort to informal (or at least unlicensed) channels to convert these funds into cash and use the cash to make payments.

This is the perfect environment for money laundering to flourish.

too much of everything is not good. These laws have the capacity of changing a good person to be bad. Some citizens might start doing illegal things in their quest to cut corners. I agree with you on this.

Before now, new laws are implemented in stages and the citizens reactions are studied. But nowadays, government seem not to care, they just dish out the laws without adverse considerations.

[zasad@]

too much of everything is not good. These laws have the capacity of changing a good person to be bad. Some citizens might start doing illegal things in their quest to cut corners. I agree with you on this.

Before now, new laws are implemented in stages and the citizens reactions are studied. But nowadays, government seem not to care, they just dish out the laws without adverse considerations.

The classic has long ago described this process in his book
“Did you really think we want those laws observed?" said Dr. Ferris. "We want them to be broken. You'd better get it straight that it's not a bunch of boy scouts you're up against... We're after power and we mean it... There's no way to rule innocent men. The only power any government has is the power to crack down on criminals. Well, when there aren't enough criminals one makes them. One declares so many things to be a crime that it becomes impossible for men to live without breaking laws. Who wants a nation of law-abiding citizens? What's there in that for anyone? But just pass the kind of laws that can neither be observed nor enforced or objectively interpreted – and you create a nation of law-breakers – and then you cash in on guilt. Now that's the system, Mr. Reardon, that's the game, and once you understand it, you'll be much easier to deal with.”
― Ayn Rand, Atlas Shrugged(C)
https://www.goodreads.com/quotes/319903-did-you-really-think-we-want-those-laws-observed-said