Cryptocurrency prices were mixed on Friday as Australia’s anti-money laundering watchdog suspended the license of two digital platforms due to drug trafficking links, increasing concern over regulation of the sector.
The suspension of the unnamed exchanges are the first by the Australian Transaction Reports and Analysis Centre, or AUSTRAC, legislation in April 2018 that brought digital currency exchanges under its oversight.
Bitcoin gained 0.71% to $3,897.10 as of 8:53 AM ET (13:53 GMT) on the Index.
Cryptocurrencies overall were flat at $133 billion at the time of writing.
Ethereum fell 0.2% to $136.84 and XRP slumped 1% to $0.31112 while Litecoin was at $56.499, up 0.77%.
Australian officials said they arrested a 27-year-old man and suspended the businesses due to his link with the companies. He was charged with importing, trafficking and possessing about 30 kg of drugs including cocaine.
As digital currencies rise in popularity, government agencies around the world have moved to oversee platforms that trade in digital assets for fear the funds could be used for money-laundering and other illicit activities.
"While cash is still 'king', digital currencies are fast becoming the preferred choice for organized criminal networks involved in money laundering, funding terrorism, and cybercrimes," Cybercrime Squad commander, Detective Superintendent Matt Craft said in a press release.
"Let this be a warning to digital currency exchange providers: if you fail to comply with your obligations, your actions will not go unnoticed."
-Reuters contributed to this report.
