Originally published on: December 06, 2024
Australia is set to crack down on crypto ATM providers as part of an effort to combat money laundering risks in the cryptocurrency industry. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has identified cryptocurrencies as a top priority for the coming year and is establishing a task force dedicated to regulating crypto ATM operators.
According to AUSTRAC CEO Brendan Thomas, cryptocurrencies and crypto ATMs are seen as attractive tools for criminals seeking to launder money due to their accessibility and ability to facilitate quick and irreversible transfers. In response to this, the task force will work to ensure that crypto ATM operators adhere to strict regulations to prevent illicit cash flows through the machines.
Leading crypto ATM providers in Australia, such as Coinflip, Localcoin, and Cryptolink, will be required to meet minimum standards set by AUSTRAC. These standards include registering with the agency, implementing transaction monitoring, conducting Know Your Customer (KYC) checks on users, reporting suspicious activity, and submitting reports on transactions exceeding $6,500.
Operators found in violation of these regulations risk facing significant financial penalties, as AUSTRAC aims to eliminate non-compliant and high-risk operations within the cryptocurrency industry. Those caught laundering money in Australia could face jail time of up to 25 years and fines exceeding $200,000.
Despite the regulatory crackdown, Australia remains a significant hub for Bitcoin and crypto ATMs, ranking third globally behind the US and Canada. The country has seen a significant increase in the number of crypto ATMs in recent years, with over 1,300 machines currently in operation.
As the cryptocurrency market continues to grow, regulatory authorities like AUSTRAC are ramping up efforts to combat money laundering and illicit activities within the industry. By cracking down on crypto ATM providers, Australia aims to create a safer and more secure environment for cryptocurrency users and investors.
Stay informed on the latest developments in blockchain and crypto by subscribing to our Crypto Biz newsletter. Get weekly insights on key business trends, regulatory updates, and market opportunities to help you navigate the world of digital assets. Subscribe now to stay ahead of the curve!
