Digital currencies can be divided into two basic types: convertible and non-convertible. Convertible digital currencies can be readily exchangeable for money, either centralised with a central administering authority or decentralised. Non-convertible digital currency is not readily exchangeable for money and is restricted to a centralised or 'closed-loop' environment, such as Flybuys and game credits or money issued by massively-multiplayer online role-playing games.

The FATF is the global standard-setting body for combating money laundering and the financing of terrorism & proliferation. Its website is at www.fatf-gafi.org.

Digital currencies can be divided into two basic types: convertible and non-convertible. Convertible digital currencies can be readily exchangeable for money, either centralised with a central administering authority or decentralised. Non-convertible digital currency is not readily exchangeable for money and is restricted to a centralised or 'closed-loop' environment, such as Flybuys and game credits or money issued by massively-multiplayer online role-playing games.

The FATF is the global standard-setting body for combating money laundering and the financing of terrorism & proliferation. Its website is at www.fatf-gafi.org.

Sub-clause 6(2), Anti - Money Laundering and Counter - Terrorism Financing Bill 2006 Replacement Explanatory Memorandum , http://www.comlaw.gov.au/Details/C2006B00175/Other/Text.

The FATF 40 Recommendations can be accessed at the following link: http://www.fatf-gafi.org/topics/fatfrecommendations/documents/internationalstandardsoncombatingmoneylaunderingandthefinancingofterrorismproliferation-thefatfrecommendations.html

The report on the review is available at: https://www.ag.gov.au/Consultations/Pages/StatReviewAntiMoneyLaunderingCounterTerrorismFinActCth2006.aspx

Financial Action Task Force, Anti-money laundering and counter-terrorist financing measures, Australia: Mutual Evaluation Report, April 2015: http://www.fatf-gafi.org/documents/documents/mer-australia-2015.html.

Items 51 and 53, table 1, section 6 of the AML/CTF Act.

To use bitcoin as an example of 'pseudonymity', every bitcoin transaction is linked to a corresponding public key, which is then stored and made publicly available to view in the block chain. If a person's identity were linked to a public key, then it would be possible to look through the recorded transactions in the block chain and see the transactions associated with that key. In other words, while bitcoin offers users the ability to transact under the concealed identity of their bitcoin address/public key, transactions are available for public viewing and therefore potentially for law enforcement scrutiny.

Financial Action Task Force, FATF Report: Virtual Currencies - Key Definitions and Potential AML/CFT Risks, 2014, pp. 9-10, Virtual currency key definitions and potential AML/CTF risks (accessed 11/10/2016).

See the FATF Recommendations: available at http://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html(fatf_releasedate).

Available online at https://www.acic.gov.au/sites/g/files/net1491/f/2016/06/the_costs_of_serious_and_organised_crime_in_australia_2013-14.pdf?v=1467258021

The Treasury, Backing Australian FinTech , Backing Australian Fintech (accessed 16/11/2016).

The FATF uses the term 'virtual currencies' to refer to 'digital currencies'.

Financial Action Task Force, Guidance for a risk-based approach to virtual currencies, June 2015, FATF Guidance for a RBA to Virtual Currencies.

In March 2015, the United Kingdom Government proposed regulation of digital currencies to support innovation and prevent criminal use. The United Kingdom intends to apply AML/CTF regulation to digital currency exchanges in the United Kingdom and will further consult with stakeholders on the proposed regulatory approach.

See the FATF's Guidance for a risk-based approach to virtual currencies for further information on how jurisdictions around the world have approached virtual currencies. Financial Action Task Force, Guidance for a risk-based approach to virtual currencies, June 2015, FATF Guidance for a RBA to Virtual Currencies.

FATF Report - Virtual Currency - Key Definitions and Potential AML/CTF risks; at 5.

Financial Crimes Enforcement Network, Application of FinCEN's Regulations to Persons Administering, Exchanging or Using Virtual Currencies, FIN-2013-G001, 18 March 2013, http://fincen.gov/statutes_regs/guidance/pdf/FIN-2013-G001.pdf.

See for example, Financial Crimes Enforcement Network, 5 May 2015, FinCEN fines Ripple Labs Inc. in first civil enforcement action against a virtual currency exchanger, FinCEN fines Ripple Labs Inc., (accessed 15 January 2016).

New York State Department of Financial Service, 3 June 2015 NYDFS announces final BitLicense framework for regulating digital currency firms, NYDFS announces final BitLicense framework, (accessed 15 January 2016).

Division 19 (Money laundering and terrorist financing) of Economic Action Plan 2014 Act, No. 1, EAP - Division 19 (ML/TF).

The Australian Digital Currency Commerce Association, Australian Digital Currency Industry Code of Conduct, November 2016 ADCCA Code of Conduct (accessed 05/05/2017).

The source of the data for digital currencies has been collated from research and also engagement with the Australian Digital Currency and Commerce Association including a number of ADCCA members who currently operate digital currency businesses.

The source of data was developed from engagement with CIT sector representatives (reporting entities) as well as AUSTRAC data.

The source of data is based on feedback received from industry during consultations on the Review of the AML/CTF Act and AUSTRAC data.

The source of data is from transaction reports submitted to AUSTRAC from reporting entities and feedback from industry.

The source of data is from transaction reports submitted to AUSTRAC from cash dealers who provide insurance services excluding motor vehicle dealers.

The source of the data for digital currencies has been collated from research and also engagement with the Australian Digital Currency and Commerce Association including a number of ADCCA members who currently operate digital currency businesses.

The source of data was developed from engagement with CIT sector representatives (reporting entities) as well as AUSTRAC data.

The source of data is based on feedback received from industry during consultations on the Review of the AML/CTF Act and AUSTRAC data.

The source of data is from transaction reports submitted to AUSTRAC from reporting entities and feedback from industry.

The source of data is from transaction reports submitted to AUSTRAC from cash dealers who provide insurance services excluding motor vehicle dealers.