Australia has said that it will bolster its money laundering laws to bring Bitcoin and other crypto-currencies into its regulatory scope.

The Government said yesterday that a coming bill would be the first stage of reforms to strengthen the nation’s Anti-Money Laundering and Counter Terrorism Financing Act. It will bring digital currency exchanges under the remit of the Australian Transaction Reports and Analysis Centre or AUSTRAC, Australia’s financial crime fighting agency, for the first time.

“The threat of serious financial crime is constantly evolving, as new technologies emerge and criminals seek to nefariously exploit them,” Minister of Justice Michael Keenan, said. “These measure ensure there is nowhere for criminals to hide.”

Two years ago the global financial crime watchdog, the Financial Action Task Force, found significant deficiencies in Australia’s anti-money laundering regime. For example, under current regulations, one can pay millions in cash for precious stones or a prime property without having to identify themselves or the source of their funds.

The proposed regulatory shake-up comes just days after AUSTRAC accused the Commonwealth Bank of Australia of “serious and systemic” breaches of money laundering laws.

The government’s move to regulate bitcoin and other crypto-currencies is akin to one made by Japan earlier this year. Under new rules introduced by Tokyo, any bitcoin or “alternative coin” exchange or money transfer business seeking to set up shop must come under the regulatory supervision of the Japanese Financial Services Agency by 1 October.

By regulating bitcoin, Japan has officially recognised it as a legal payment method, a move that analysts say has helped the crypto-currency’s price hit record highs. Australia’s new position could also drive up prices.

Meanwhile in Europe, Ukraine is about to weigh in on the regulation of crypto-currencies later this month.