AUSTRAC to crackdown on crypto ATMs due to money laundering risks in Australia

Australian Transaction Reports and Analysis Centre (AUSTRAC) is making crypto the main focus of their radar. The agency is looking to set up a new team for surveillance on providers of crypto ATM services who may be breaching anti money laundering rules. In a recent statement on December 6,  Brendan Thomas (CEO of AUSTRAC) shared that […]

Dec 6, 2024 - 04:36
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AUSTRAC to crackdown on crypto ATMs due to money laundering risks in Australia

Australian Transaction Reports and Analysis Centre (AUSTRAC) is making crypto the main focus of their radar. The agency is looking to set up a new team for surveillance on providers of crypto ATM services who may be breaching anti money laundering rules.

In a recent statement on December 6,  Brendan Thomas (CEO of AUSTRAC) shared that the agency will focus on the crypto industry from the beginning of 2025.

He says as crypto and crypto ATMs are  easy to find and allow quick permanent transactions this makes them which makes them an “attractive avenues for criminals looking to launder money”.

As it’s an initial step for the AUSTRAC to reduce the illegal use of cryptocurrency in Australia, the agency will continue to keep an eye on crypto ATMs moving into 2025.

AUSTRAC says those caught breaking the rules could face hefty financial penalties

AUSTRAC CEO Brendan Thomas announced a new team at AUSTRAC will ensure crypto ATM operators obey rules aimed at reducing the risk of dirty money flowing through their machines.

The four largest crypto ATM companies in Australia are Coinflip, with 680 machines, Localcoin, with 465, Cryptolink with 75, and Nova with 30.

Crypto ATM operators already have to register with AUSTRAC, run identity checks on their customers, and monitor transactions. On top of that, they must file a report concerning any suspicious activities if the withdrawn or deposited cash is more than $6,500 (10,000 Australian dollars).

He added, “As the use of cryptocurrency increases, so too will criminal exploitation.” The new task force will be working to remove illicit activities that don’t operate under the law.

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