- AUSTRAC intensifies efforts to regulate crypto ATMs amid rising money laundering and scam risks in Australia.
- AUSTRAC’s new task force will ensure crypto ATM operators meet AML and KYC compliance standards.
- Australia’s crypto ATM market faces increased scrutiny as criminal exploitation of crypto grows.
AUSTRAC, Australia’s financial regulator, is cracking down on non-compliant cryptocurrency ATMs. On December 6, the agency issued a warning that cryptocurrency ATMs are increasingly being used for illegal activities such as money laundering.
Despite the fact that the country has about 400 registered cryptocurrency exchanges, only a few of them operate crypto ATMs. As a result, many of the country’s 1,200 crypto ATMs may be failing to meet anti-money laundering (AML) requirements.
Concerns Over Criminal Activity
AUSTRAC CEO Brendan Thomas raised alarm about criminals’ expanding use of cryptocurrency ATMs. He emphasized how easily accessible they are and how quickly irreversible transactions can be completed. He emphasized that the rising use of bitcoin increases the potential of criminal exploitation.
Task Force to Enforce Compliance
In response, AUSTRAC formed a new task group. This group will ensure that crypto ATM operators follow strict AML and counter-terrorist financing (CTF) regulations. Crypto ATM operators must comply with Know Your Customer (KYC) rules.
They must monitor transactions, and record currency deposits or withdrawals exceeding AUD 10,000. Failure to comply may result in financial penalties or other legal consequences.
The task team will also work to enforce basic compliance standards. AUSTRAC intends to lower the risks associated with scams and fraud by implementing tighter regulations. The initiative is consistent with global attempts to improve scrutiny of cryptocurrency ATMs. Recently, Germany also seized unlicensed crypto ATMs for non-compliance.
Rising Threat of Crypto in Crime
AUSTRAC has identified cryptocurrency as a high-risk source of money laundering and terrorism financing. In its 2024 National Risk Assessment Report, the agency stated that illegal use of cryptocurrency is likely to increase.
AUSTRAC has made cryptocurrency one of its top priorities in 2025. It seeks to tighten oversight of the cryptocurrency business while also protecting Australia’s financial ecosystem. With Australia ranking third globally in crypto ATMs, the regulatory push is a crucial step in combating financial crime.
