AUSTRAC to crack down on crypto ATMs due to money laundering risks in Australia

Australian Transaction Reports and Analysis Centre (AUSTRAC) is making crypto the main focus of its radar. The agency is looking to set up a new team to monitor crypto ATM services that 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 that crypto and crypto ATMs are easy to find and allow quick, permanent transactions, which makes them “attractive avenues for criminals looking to launder money.”

It is 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 that violations will result in 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 (680 machines), Localcoin (465 machines), Cryptolink, (75 machines), and Nova (30 machines).

Crypto ATM operators already have to register with AUSTRAC, run identity checks on their customers, and monitor transactions. They must also file a report concerning any suspicious activities if the cash withdrawn or deposited is more than $6,500 (10,000 Australian dollars).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 work to eliminate illicit activities that don’t operate under the law.