AUSTRAC Announces Crackdown on Australian Crypto ATMs

AUSTRAC, an Australian financial intelligence agency, announced a new crackdown on crypto ATMs. Although the regulator hasn’t issued an outright ban, it will significantly scrutinize ATMs for legal compliance.

AUSTRAC called this crackdown the “first step” in the agency’s broader initiative to fight crypto crime.

AUSTRAC to Investigate Crypto ATMs for Enabling Money Laundering

The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced this crackdown via a press release on December 6. According to the regulator, scammers have used crypto ATMs to pursue criminal activities and move illicit funds. AUSTRAC sees crypto ATMs as the optimal funnel for money laundering and driving crypto-related crimes.

“Crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers. Crypto ATM providers need to ensure they are reducing the risks of crime. If they’re ignoring those obligations, AUSTRAC won’t hesitate in taking action,” claimed AUSTRAC CEO Brendan Thomas.

Previously, UK regulators also cracked down on crypto ATMs in 2022, citing similar money laundering claims. Australian law enforcement has been investigating crypto ATMs for some time now. In 2022, the NSW Police sized several cryptocurrency ATMs as a part of an inter-agency raid.

AUSTRAC claimed that only a few crypto firms operate the majority of ATMs in Australia. Thus, the agency is well-equipped to scrutinize potential violators. The regulator also established a special task force for this purpose.

The organization’s CEO called this crackdown “the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia.” However, other government agencies have been conducting their own operations.

Meanwhile, ASIC, another finance regulator, dismantled over 600 crypto scams in August, and police seized $6.4 million from crypto criminals in October.

Number of Bitcoin ATMs Per Country as of December 2024. Source: Statista

In other words, AUSTRAC is primed to employ harsh measures. Thomas used anti-crypto rhetoric at several points in the statement, with lines like “as the use of cryptocurrency increases, so too will criminal exploitation.” Nonetheless, this crackdown focuses on enforcement and includes no new restrictions.

To maintain compliance, Australian crypto ATM operators must monitor transactions, perform KYC checks on all customers, report all withdrawals over $10,000, and more. Crypto ATM scams are very common, and Australia’s regulators constantly encourage users to report suspicious activity in crypto markets.