Australia targets crypto ATMs over money laundering
Australia’s financial intelligence agency AUSTRAC is launching a new task force to monitor crypto ATM operators and tackle potential money laundering activities.
AUSTRAC CEO Brendan Thomas emphasised that crypto ATMs are widely accessible and facilitate near-instant, irreversible transfers, making them attractive for criminals.
Thomas described this initiative as the first step in AUSTRAC’s increased focus on regulating the cryptocurrency sector in 2025.
The new task force will ensure that all crypto ATM operators comply with mandatory regulations to reduce illicit financial activity.
Operators must register with AUSTRAC, conduct Know Your Customer (KYC) checks, and monitor transactions for suspicious activities.
Operators are required to file reports for cash transactions exceeding 10,000 Australian dollars or 6,500 US dollars.
Non-compliance could result in penalties including up to 12 years in prison and fines of 102,072 US dollars or 158,400 Australian dollars.
Offenses involving over 1 million Australian dollars or 644,400 US dollars could result in 25 years imprisonment and fines of 214,585 US dollars or 333,000 Australian dollars.
Australia is now the third-largest hub for crypto ATMs in the world with over 1,302 machines, a dramatic rise from just 67 in August 2022.
Leading providers in Australia include Coinflip with 680 ATMs, Localcoin with 465, and Cryptolink with 75.
The rapid increase was fueled by private-sector investment and adoption surged significantly by late 2022.
By April 2023, Australia surpassed Asia in the number of Bitcoin (CRYPTO:BTC) ATMs, overtaking major markets like China, Japan, and India.
AUSTRAC has disclosed that 400 digital currency exchanges are currently registered, but only a small fraction operates crypto ATMs.
Brendan Thomas warned that as cryptocurrency adoption grows, so will its exploitation by criminals, making proactive regulation essential.
Thomas stated that the task force will focus on shutting down high-risk, non-compliant operations to protect the integrity of the financial system.
Australia remains behind the United States and Canada in the number of crypto ATMs but is rapidly catching up.
The US leads with over 31,647 Bitcoin ATMs, representing 81 percent of the global total, while Canada follows with 3,022 ATMs or 7.8 percent of the market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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