- AUSTRAC has warned crypto ATM operators to comply with anti-money laundering rules that have been set up to guide the state or face legal actions.
- Australia has the largest crypto ATM market in the Asia-Pacific region, with 1,648 machines, raising concerns about misuse. AUSTRAC is increasing enforcement efforts to ensure compliance.
The Australian financial watchdog has warned crypto ATM operators to follow the anti-money laundering rules in the state or face legal action. This warning came due to the fact that many of these machines may be used by criminals for illegal activities like fraud or money laundering.
AUSTRAC, the Australian Transaction Reports and Analysis Centre, which is the body in charge of all financial-related activities in the country, has found some signs of illegal activities that involve crypto ATMs, including scams and fraud.
In a statement released on March 31, the agency raised some concerns about the continuous rise in the number of these machines and a possible misuse of them. In December, the CEO, Brendan Thomas, created a team of experts from AUSTRAC’s regulatory, enforcement, and intelligence divisions to tackle all crimes related to crypto kiosks.
The group has officially started working and is working closely with businesses to understand the threats posed in the industry and also check if all the ATMs follow the law. It was during this search that the team found strange patterns and suspicious behavior, which could possibly link to scams and fraud.
Rise of Crypto ATMs in Australia and Regulatory Concerns
Australia now has the biggest crypto ATM market in the whole Asia-Pacific, with 1,648 machines, up from just 23 in 2019 and 60 in 2022. Sydney alone has 348 units, which allow cash deposits for Bitcoin purchases. This could help criminals move illegal money.
AUSTRAC reported that some people have lost their life savings due to scams that involved these crypto ATMs. All operators must register with regulators and follow anti-money laundering rules, which includes; tracking transactions, verifying customer identity, and reporting suspicious behavior. Authorities warn that businesses that fail to comply could face heavy fines, with more strict enforcement planned.
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