AUSTRALIA Law and Practice Contributed by: Joachim Delaney and Ranjani Sundar, HFW
the prospective destruction of the bitcoin would vitiate a final judgment. In Australian Securities and Investments Com - mission (ASIC) v A One Multi Services Pty Ltd [2021] FCA 1297, Derrington J of the Federal Court considered that since cryptocurrency is extremely liquid and easily transferrable, the assets may be dissipated in a manner that is difficult to trace, unless an individual with the power of a receiver is appointed to recover them. Fraud Involving Crypto-Assets The volatility of the value of cryptocurrency hinders the ability to trace its value in cases of fraud, as it may not be possible to maintain records identifying the fundamental value of the cryptocurrency.
Nonetheless, there are Commonwealth laws which impose mandatory reporting obligations in relation to suspicious transfers of crypto - currency. The legal status of “Digital Currency Exchange Register” within Sections 5 and 76B of the Anti-Money Laundering and Counter- Terrorism Financing Act 2006 (Cth) (the “AML/ CTF Act” ) means that the exchange and transfer of cryptocurrency is subject to the Anti‑Money Laundering/Counter‑Terrorism Financing Rules Instrument 2007 (No 1) (Cth) (the “AML/CTF Rules” ), which was created pursuant to Section 229 of the AML/CTF Act. For instance, under Section 41(2) of the AML/CTF Act, a reporting entity is required to report suspicious matters to the Australian Transaction Reports and Analysis Centre. Additionally, Rule 18.2 of the AML/CTF Rules stipulates the content that is required to be included in a suspicious matter report that involves digital currency.
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