Australia’s financial watchdog will be cracking down on non-compliant crypto ATMs in 2025, a move aimed at curbing money laundering and other related scams.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has launched a dedicated task force to enforce stricter regulations for crypto ATMs across the country. The move is part of the agency’s broader efforts to combat money laundering and other illicit activities associated with digital currencies.
On Friday, the financial intelligence agency flagged digital assets as a high-risk avenue for criminal exploitation, citing its accessibility and ability to facilitate near-instant, irreversible transactions.
The agency claimed that the rise of cryptocurrencies in Australia has allowed criminals to misuse them, with many individuals falling victim to scams and losing their life savings. As a result, the country has taken into consideration the suffering of its citizens with the launch of the new taskforce.
Throughout next year, the group will crack down on non-compliant crypto ATM operators in the country and monitor these providers to ensure compliance with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws.
The laws require operators to conduct know-your-customer (KYC) checks, monitor and report suspicious transactions, submit threshold transaction reports for cash deposits or withdrawals exceeding AUD 10,000.
“As the use of cryptocurrency increases, so too will criminal exploitation, which is why this taskforce will work to eliminate non-compliant high risk operations. This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia. We will be focusing on this industry over the course of next year,” said AUSTRAC’s CEO, Brendan Thomas.
Australia is home to approximately 1,200 crypto ATMs, the third-largest number globally. However, only a fraction of the 400 registered digital currency exchange providers in the country operate these machines, making them a focal point for regulatory scrutiny.
AUSTRAC highlighted that these ATMs are increasingly exploited for money laundering, scams, and money mule activities due to their lack of compliance.
However, the financial intelligence agency warned that henceforth, operators failing to meet compliance standards could face significant financial penalties and enforcement actions.
To help eliminate criminals from the Australian crypto market, AUSTRAC has urged the public to report suspected scams involving crypto ATMs to local authorities and cybersecurity platforms like Scamwatch and ReportCyber. The agency also offers resources to help individuals recognize and avoid fraudulent activities.
Thomas reiterated that this initiative marks the beginning of AUSTRAC’s intensified focus on the crypto industry. “Our goal is to reduce the criminal misuse of digital assets while ensuring legitimate operators comply with their obligations,” he explained.
Meanwhile, Australia’s efforts to combat scams and other illicit activities involving crypto ATMs mirror similar crackdowns worldwide. Earlier this year, Germany’s financial watchdog seized illegal crypto ATMs in the country.
During the operation, the authorities confiscated up to 250,000 euros ($279,000) in cash from the operators.
In addition to Germany, the United Kingdom recently declared all crypto ATMs operating in the country as unlawful after shutting down 26 Bitcoin ATMs last year. Earlier in September, the country’s Financial Conduct Authority (FCA) made its first case against an individual for running multiple crypto ATMs without proper registration.
Despite these challenges, the global cryptocurrency ATM market continues to grow. Industry experts project significant expansion in the sector, with thousands of new machines being installed annually.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
