The auction house was something devs disregarded as impossible to code for many years. Now we have it (thanks to a lot of hard work from the dev team).
Problem is, it is far too limited, taxed to death, and rife with danger. All of that needs to be turned around.
There shouldn't be anything standing in the way of a healthy trading economy. It's not creating gear, it's selling it to people who have a higher chance of actually using it than stockpiled gear. It should also be able to help staff to identify people who are duping due to irregular trading patterns with no discernible source.
Lower Listing price to 50% of it's current value.
Add "mailbox" upgrades to houses (for about the same cost as a virtual upgrade). Mailboxes will let players send things from their safe box at the auction house directly to a house ID.
Remove the 10 listing limit. It's retarded and just discourages people from actually filling it up.
Daily generated police equipment in very small amounts (not tazers, flashbangs, spikestrips) ect.
Add mailboxes where people can list items (away from rebels so as to not create a redirected rebel gear cycle).
Add stats for auctions sold.