Australia’s National Financial Intelligence Agency Cracks Down on Crypto ATMs
In a significant move, Australia’s national financial intelligence agency, Australian Transaction Reports and Analysis Centre (AUSTRAC), has flagged cryptocurrency as a priority for the year ahead. As part of this initiative, AUSTRAC is creating a task force to crack down on crypto ATM providers that may be flouting Anti-Money Laundering laws.
A Growing Concern: Crypto ATMs in Australia
According to AUSTRAC’s CEO Brendan Thomas, the agency is shifting its focus to the cryptocurrency industry in 2025. Thomas noted that "cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers." This concern is echoed by experts who have been warning about the potential risks of crypto ATMs being used for illicit activities.
A Growing Market: Australia’s Rise in Crypto ATM Adoption
Australia has emerged as a hub for Bitcoin (BTC) and crypto ATMs, with over 1,302 machines currently operating in the country. According to Coin ATM Radar data, this number has increased exponentially since August 2022, with Australia surpassing Asia’s count by April 2023. The US remains the largest market for crypto ATMs, with 31,647 machines representing over 81% of the global market.
The Role of Crypto ATMs in Money Laundering
Crypto ATMs have been identified as a potential vulnerability in the fight against money laundering. These machines allow users to exchange cash for cryptocurrencies, making them attractive to those looking to launder funds. AUSTRAC’s task force will focus on ensuring that crypto ATM operators meet minimum standards to prevent illicit cash from passing through these machines.
The Task Force: Ensuring Compliance
AUSTRAC has disclosed that 400 digital currency exchanges are registered on its books, but only a few operate crypto ATMs. The agency is working to eliminate non-compliant high-risk operations and will be focusing on the following areas:
- Registration: Crypto ATM operators must register with AUSTRAC
- Transaction Monitoring: Operators must undertake transaction monitoring to detect suspicious activity
- Know Your Customer (KYC): Operators must implement KYC information checks on users
- Reporting: Operators are expected to report suspicious activity and submit threshold transaction reports for cash deposits and withdrawals of over $6,500 (10,000 Australian dollars)
The Consequences of Non-Compliance
Any operations caught flouting the law will "risk being subject to significant financial penalties," according to Thomas. Penalties for money laundering in Australia can include up to 12 years behind bars, more than $100,000 in fines, or both. If the value of laundered funds exceeds $644,400, jail sentences can be up to 25 years and fines as much as $214,585, or both.
A Growing Market: The Future of Crypto ATMs
As the use of cryptocurrency increases, so too will criminal exploitation. AUSTRAC’s task force is a step in the right direction, but more needs to be done to prevent illicit activities from taking place on these machines. With Australia emerging as a hub for crypto ATMs, it is essential that operators are held accountable and meet the necessary standards to prevent money laundering.
The Road Ahead: What’s Next for Crypto ATMs in Australia
As AUSTRAC continues to crack down on non-compliant operations, it is likely that we will see a reduction in the number of crypto ATMs operating in Australia. However, this move may also lead to an increase in underground activity as operators seek to evade detection. The future of crypto ATMs in Australia remains uncertain, but one thing is clear: the need for greater regulation and oversight.
Conclusion
AUSTRAC’s task force is a significant development in the fight against money laundering in Australia. By focusing on ensuring compliance among crypto ATM operators, the agency aims to reduce the criminal use of cryptocurrency in the country. As the market continues to grow, it is essential that operators are held accountable and meet the necessary standards to prevent illicit activities from taking place.
Sources:
- Australian Transaction Reports and Analysis Centre (AUSTRAC)
- Coin ATM Radar
- The Australian Government’s Department of Home Affairs
Note:
The above article has been rewritten with proper grammar, coherence, and formatting.