AUSTRAC Launches Taskforce to Enforce Regulations on Crypto ATMs
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has established a task force to enforce stricter regulations for crypto ATMs in Australia. This initiative aims to combat money laundering and other illicit activities linked to digital currencies.
On Friday, AUSTRAC identified digital assets as high-risk for criminal exploitation due to their accessibility and the ability to facilitate quick, irreversible transactions.
New Taskforce to Crack Down on Crypto ATM Operators
AUSTRAC noted that the rise of cryptocurrencies has led to misuse by criminals, resulting in significant financial losses for individuals. The new task force will focus on non-compliant crypto ATM operators and ensure adherence to Australia’s anti-money laundering and counter-terrorism financing laws.
Operators are required to conduct know-your-customer checks, monitor and report suspicious transactions, and submit reports for cash deposits or withdrawals exceeding AUD 10,000.
“As cryptocurrency use increases, so will criminal exploitation. This task force aims to eliminate non-compliant high-risk operations, marking the beginning of AUSTRAC’s efforts to reduce criminal use of cryptocurrency in Australia,” said AUSTRAC CEO Brendan Thomas.
The Scale of the Problem
Australia hosts approximately 1,200 crypto ATMs, ranking third globally. However, only a small number of the 400 registered digital currency exchanges operate these machines, making them targets for regulatory scrutiny.
AUSTRAC emphasized that these ATMs are frequently exploited for money laundering and scams due to compliance failures. Operators not meeting compliance standards may face substantial penalties and enforcement actions.
AUSTRAC encourages the public to report suspected scams involving crypto ATMs to local authorities and cybersecurity platforms. The agency provides resources to help individuals recognize and avoid fraudulent activities.
Thomas stated that this initiative signifies AUSTRAC’s intensified focus on the crypto sector: “Our goal is to reduce the criminal misuse of digital assets while ensuring legitimate operators comply with their obligations.”
Global Context and Local Measures
Australia's actions against scams involving crypto ATMs align with global trends. Earlier this year, Germany’s financial watchdog seized illegal crypto ATMs, confiscating up to 250,000 euros ($279,000) from operators.
The United Kingdom recently declared all crypto ATMs unlawful after shutting down 26 Bitcoin ATMs last year. In September, the Financial Conduct Authority initiated its first case against an individual operating multiple unregistered crypto ATMs.
Despite these challenges, the global cryptocurrency ATM market continues to expand, with projections indicating thousands of new machines will be installed annually.