Key Points
- Australia forms a task force to regulate non-compliant cryptocurrency ATM providers.
- The task force aims to reduce criminal misuse of cryptocurrency in the country.
Australia has set up a specialized task force to regulate cryptocurrency ATM providers that don’t adhere to the country’s anti-money laundering laws.
The Australian Transaction Reports and Analysis Centre, also known as AUSTRAC, issued a warning to these operators.
Australia’s Crypto ATM Landscape
According to Coin ATM Radar, Australia ranks third globally for the number of Bitcoin and cryptocurrency ATMs, with over 1,300 machines. AUSTRAC, however, estimates the number to be around 1,200.
The agency asserts that only a small portion of the 400 registered digital currency exchanges in the country operate these machines, making them a prime target for regulatory scrutiny.
Brendan Thomas, AUSTRAC CEO, stated that cryptocurrency and crypto ATMs have become appealing channels for criminals due to their accessibility and ability to facilitate near-instant and irreversible transfers.
Regulatory Measures
In response, the agency plans to focus on eliminating non-compliant, high-risk operators in the coming year to curb the criminal misuse of cryptocurrency.
In Australia, crypto ATM operators must comply with anti-money laundering obligations. These include registering with AUSTRAC, conducting Know Your Customer checks, monitoring transactions, and reporting suspicious activities, including large cash transactions exceeding 10,000 AUD (approximately $6,430).
The task force will oversee the sector to ensure that operators adhere to these rules and mitigate the risks posed by the kiosks, such as facilitating money laundering, scams, and other illegal activities.
AUSTRAC’s recent warning aligns with its viewpoint that digital currencies and exchanges present significant money laundering and terrorism financing risks.
The agency’s 2024 National Risk Assessment Report identified cryptocurrencies as a high-risk channel for illegal activities and predicted that these risks would increase over the next three years.
Outside Australia, other jurisdictions have also started regulating crypto ATMs to curb illicit activities. For example, in late August, German regulators seized 13 crypto ATMs in a sting operation and warned that unlicensed operators could face severe penalties, including up to 5 years in prison.
In the UK, the Financial Conduct Authority stated that no crypto ATMs are legally operating in the country during a money laundering case against an illegal operator.
