Thomas Daniels
Australia has taken a bold step to close legal gaps in cryptocurrency transactions by establishing a specialist task force to make sure cryptocurrency ATM operators are adhering to the country’s anti-money laundering (AML) regulations. On December 6, the Australian Transaction Reports and Analysis Centre (AUSTRAC) sent out a strong warning, stressing that operators who do not comply will be subject to enforcement actions and heavy fines.
With more than 1,300 machines, Australia is the third-largest cryptocurrency ATM hub in the world, according to Coin ATM Radar. AUSTRAC, however, projects a somewhat smaller number of about 1,200. The 400 registered digital currency exchanges in the country only oversee a small percentage of them, which raises questions about regulatory gaps and illicit use.
Because of their accessibility and ability to enable “near-instant and irreversible transfers,” bitcoin ATMs have emerged as attractive tools for fraudsters, according to AUSTRAC CEO Brendan Thomas. In order to prevent criminal exploitation and safeguard Australian customers, the new task force will give priority to high-risk businesses.
“We’re seeing too many Australians falling victim to scams carried out through cryptocurrency. As its use increases, so too will criminal exploitation, which is why this task force will work to eliminate non-compliant high-risk operations.”
The CEO of AUSTRAC, Brendan Thomas
Australian cryptocurrency ATM operators are legally obligated to:
Keep an eye on transactions and report any questionable activity.
Declare any significant cash transactions that total more than AUD 10,000, or roughly $6,430.
Since the task force aims to reduce dangers including money laundering, frauds, and other illegal activity, operators that fail to fulfill these duties face regulatory action.
The Australian crackdown is in line with international initiatives to control cryptocurrency ATMs.
In August 2023, authorities in Germany confiscated 13 cryptocurrency ATMs and issued warnings to illegal operators that they might face fines of up to five years in prison.
The lack of appropriate license was highlighted when the Financial Conduct Authority in the UK ruled that all cryptocurrency ATMs were unlawful.
Cryptocurrencies are classified as a “high” risk channel for money laundering and terrorism funding in AUSTRAC’s 2024 National Risk Assessment Report. The task force established by Australia is an important step in improving regulatory compliance and thwarting financial crimes, as dangers are expected to increase over the next three years.
The need for strict compliance procedures is highlighted by the regulatory attention on crypto ATMs as cryptocurrency adoption soars. By taking a proactive stance, Australia hopes to protect its financial system from the threats posed by noncompliant operators and establish a standard for international enforcement tactics.
