Australia’s financial intelligence agency on Friday launched two supervisory campaigns targeting the country’s virtual assets sector, stepping up oversight of crypto businesses ahead of sweeping AML reforms, the Australian Transaction Reports and Analysis Centre (AUSTRAC) said in a statement.

AUSTRAC said the campaigns are focused on virtual asset service providers, or VASPs, that offer over-the-counter crypto-to-cash services, and on local exchanges operating in Australia. The agency said the move reflects both the risk profile of the sector and its regulatory priorities as new laws prepare to take effect.

The reforms will replace the narrower term “digital currency exchange” with the internationally recognized “VASP” designation, according to AUSTRAC. The agency said AML and counterterrorism financing (CTF) obligations will extend to a wider range of crypto-related products, including custody, brokerage, and other virtual asset services beyond traditional cash-to-crypto exchanges.

“AUSTRAC is checking how well crypto businesses in Australia are managing money-laundering risks, ahead of major new laws coming into force,” AUSTRAC Chief Executive Officer Brendan Thomas said in the statement. “We will continue to provide advice and guidance to assist businesses on how to comply so they are well equipped to manage their AML/CTF obligations.”

Under the first campaign, dubbed “ramps and rails,” AUSTRAC said it is engaging directly with 36 crypto businesses to examine their business models, distribution channels, scale of services, and the effectiveness of their AML and CTF controls. The second campaign involves engagement with 27 local crypto exchanges and is focused on their readiness for the incoming reforms and on improvements to governance arrangements, the agency said.

Thomas said the shift to the VASP framework was substantive rather than cosmetic. “This is more than a name change,” he said in the statement. “It reflects how this sector has evolved and ensures our regulatory framework remains relevant.”