Australia’s financial crime watchdog, AUSTRAC, has launched a cryptocurrency task force to tackle the misuse of crypto ATMs and enhance compliance with anti-money laundering laws.
The initiative, announced on December 6, reflects the Australian government’s growing focus on the cryptocurrency sector, which is increasingly being exploited for criminal activities such as money laundering, scams, and fraud.
A Closer Look at Crypto Crime
AUSTRAC CEO Brendan Thomas emphasized the urgent need to address the vulnerabilities of cryptocurrency and crypto ATMs. “Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers,” he said.
To combat this, AUSTRAC has established an internal cryptocurrency task force dedicated to ensuring that digital currency exchanges (DCEs) providing crypto ATM services meet minimum regulatory standards.
These standards include Know Your Customer (KYC) checks, transaction monitoring, and reporting suspicious activity under Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006.
Rising Crypto ATM Usage in Australia
Australia has rapidly become the third-largest hub for crypto ATMs globally, with over 1,300 machines in operation as of 2023. This marks a dramatic rise from just 67 ATMs in mid-2022, driven by increasing private-sector investment. The number of Bitcoin ATMs in Australia exceeded that of large economies such as China, Japan, and India in April 2023.
Despite the growth, only a small fraction of the 400 registered DCEs in Australia operate these machines. This highlights a niche but increasingly scrutinized sector within the broader cryptocurrency industry.
Strengthening Crypto Compliance in Australia
The task force will work to eliminate non-compliant, high-risk operations in the crypto ATM market. AUSTRAC aims to reduce risks by helping operators identify, monitor, and report financial crime. “Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime. If they’re ignoring those obligations, they risk being subject to significant financial penalties,” Thomas warned.
AUSTRAC is also enhancing public awareness by providing resources to help Australians recognize and report scams. Victims of fraud or suspected criminal activities involving crypto ATMs are urged to contact local authorities and platforms like Scamwatch or ReportCyber for assistance.
Implications for the Crypto Industry
The initiative signals a more rigorous approach to cryptocurrency regulation in Australia. While the country has seen exponential growth in crypto ATM adoption, the increased scrutiny could lead to stricter compliance requirements for operators.
This move aligns with global trends as regulators worldwide grapple with the risks associated with cryptocurrency.
AUSTRAC’s task force is a significant step toward addressing these challenges, aiming to make the cryptocurrency industry safer for legitimate users while deterring criminal exploitation.
As the task force begins its work in 2025, the outcomes could set a precedent for other nations looking to regulate their growing crypto economies.
Australia’s proactive stance on crypto regulation underscores its commitment to maintaining a secure financial system while embracing technological innovation.
With AUSTRAC leading the charge, the country aims to balance growth in the cryptocurrency market with robust safeguards against criminal activities, ensuring a safer ecosystem for all stakeholders.