Australia targets illegal crypto ATM operators
Australia has put in place a task force to address the issue of rule-violation crypto ATMs as stated by AUSTRAC on December 6. The agency issued a warning to crypto ATM operators to abide by the anti-money laundering laws or else face financial and legal consequences.
According to Coin ATM Radar, Australia ranks third globally with more than 1,300 Bitcoin and crypto ATMs. However, AUSTRAC puts the number closer to 1,200 and claims that only a handful of the 400 registered digital currency exchanges actually operate these ATMs. Thus, they will be the center of attention for the new task force.
Brendan Thomas, AUSTRAC’s CEO, remarked that crypto ATMs appeal to criminals. These machines carry out fairly fast and irreversible transactions, thus making them more apt for conning and other illegal dealings.
“We are seeing far too many Australians being scammed by cryptocurrency,” Thomas declared. “And that means as long as there is a rise in cryptocurrency usage, the same will happen with its abuse. This makes it of utmost importance to target high-risk and illegal operations through this task force.“
Upscale regulations apply to crypto ATM operators in Australia, including the following:
- Registration with AUSTRAC
- Identification of customers (know-your-customer)
- Monitoring unusual transactions
- Reporting large cash transactions exceeding AUD 10,000 ($6,430)
This task force’s functions will ensure that expenditures are not undermined by any illegal activity. Its major activities will involve focusing on the reduction of scams, money laundering, and anything else illegal.
In its 2024 National Risk Assessment Report, AUSTRAC categorized cryptocurrency as a “high-risk” instrument that could be involved in crime. It expects these risks to rise in the coming three years.
Australia is not the only country taking action against illegal crypto ATMs. In August, German authorities seized 13 illicit machines. They warned operators without licenses could face heavy fines or even jail time. Meanwhile, the Financial Conduct Authority announced that, following a money-laundering investigation, it found no crypto ATMs operating legally in the UK. Australia’s new task force is a clear message: crypto ATMs must follow the law, or they’ll face serious consequences.
