May 2 2016
A government review of the federal anti-money-laundering regime has concluded that the use of digital currencies such as bitcoin to evade monetary controls poses a “significant” risk.
The review of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 found that features of bitcoin and other digital currencies “make them attractive to individuals and businesses who wish to utilise them for both legitimate and illegitimate purposes”.
Currently the definition of money in the act includes ‘e-currency’; however, that definition does not capture cryptocurrencies. E-currencies are defined to include digital money backed either directly or indirectly by precious metal, bullion or a thing.