AUSTRAC (Australian Transaction Reports and Analysis Centre) is intensifying its efforts to enforce anti-money laundering and counter-terrorism financing (AML/CTF), regulations on crypto ATMs.
In a report published on December 6, the agency said that cryptocurrency ATMs were increasingly being used to launder money and for other illegal activities. Even though there are around 400 crypto exchanges in the country, only a tiny portion of them operate crypto ATMs. This gap leaves a significant share of Australia’s 1,200 crypto ATMs potentially non-compliant.
AUSTRAC’s CEO Brendan Thomas, highlighted the dangers posed by cryptocurrency ATMs. He emphasized their appeal for criminals because of their ease-of-use and ability to conduct near instant, irreversible transaction.
“He said:
“We’re seeing too many Australians falling victim to scams carried out through cryptocurrency, and we’ve heard of some victims losing their life savings, which is just heart breaking. 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.”
AUSTRAC created a task force in order to address this issue. This group will ensure that digital currency exchanges operating crypto ATMs are compliant. This initiative is aimed at implementing stricter compliance standards, and stronger safeguards in order to prevent and detect fraud.
Operators of crypto ATMs in Australia must adhere to stringent AML/CTF regulations. This includes registering with AUSTRAC and conducting Know Your Customer (KYC), checking transactions, and submitting cash transactions over AUD10,000 (approximately US $6430). If you do not comply, the regulator may take swift and significant action.
Thomas the warning:
“Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime. If they’re ignoring those obligations they risk being subject to significant financial penalties and AUSTRAC won’t hesitate in taking action.”
This move is in line with an increasing trend worldwide of greater scrutiny The use of crypto ATMs. German authorities recently seized 13 crypto ATMs and €50,000 in cash due to non-compliant operations.
Posted In: Australia, Crime, Crypto, Featured, Regulation Author 
Oluwapelumi Adejumo
Oluwapelumi is a believer in Bitcoin. He shares his insights and opinions on topics such as DeFi, Hacks, Mining, Culture, etc., highlighting the transformative power of Bitcoin.
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Assad Jafri
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