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Australia Tightens Grip on Crypto ATMs with New Task Force Initiative

Australia Tightens Grip on Crypto ATMs with New Task Force Initiative

CryptoNewsCryptoNews2024/12/06 16:44
By:Shalini Nagarajan

AUSTRAC CEO Brendan Thomas warned crypto ATM providers to comply with anti-money laundering laws or face severe penalties.

Last updated:
December 6, 2024 01:10 EST

Australia’s financial crime watchdog on Friday launched a cryptocurrency task force to identify and penalize crypto ATM providers violating anti-money laundering laws.

AUSTRAC said the task force aims to ensure digital currency exchanges (DCEs) offering crypto ATM services meet minimum standards. The initiative seeks to enforce strong practices to prevent these machines from being used for scams, fraud or criminal transactions.

Under the AML/CTF Act 2006, DCEs, including crypto ATM providers, must register with AUSTRAC. Additionally, they are required to monitor transactions, verify customer identities (KYC), report suspicious activities (SMRs) and file threshold transaction reports for cash transactions of $10,000 or more.

AUSTRAC is cracking down on #cryptocurrency ATM providers who don’t comply with AML/CTF laws.

Read more: https://t.co/I3L3S23y0M pic.twitter.com/KmqlaTMNHg

— AUSTRAC (@AUSTRAC) December 6, 2024

Australia Watchdog Vows Action Against Crypto ATM Providers Ignoring AML Obligations

AUSTRAC CEO Brendan Thomas said the agency will implement measures against operators who violate the regulations.

“Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime,” he said. “If they’re ignoring those obligations they risk being subject to significant financial penalties and AUSTRAC won’t hesitate in taking action.”

“This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia. We will be focusing on this industry over the course of next year.”

AUSTRAC has registered about 400 digital currency exchange providers so far. Among these, only a few operate crypto ATMs. Yet Australia boasts around 1200 such machines, ranking third globally in terms of quantity.

AUSTRAC and ASIC Take Steps to Secure Australia’s Growing Crypto Ecosystem

Cryptocurrency adoption is rising quickly in Australia, with an estimated 31.6% of Australians having held or currently holding cryptocurrencies, including many owning NFTs.

Australian regulator ASIC has introduced new licensing rules requiring crypto exchanges managing significant client assets to obtain an AFSL, aiming to strengthen consumer protection.

This week, ASIC invited public feedback on updates to its digital asset guidelines to clarify how the Corporations Act 2001 applies to digital assets and guide related financial services entities.

Earlier this year, Australian authorities uncovered a massive crypto scam targeting locals, affecting over 2,000 digital wallets . The scam used a tactic called “approval phishing,” which has stolen over $4b in crypto globally since May 2021.

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