Australia's financial intelligence agency AUSTRAC is launching a dedicated task force to crack down on cryptocurrency ATMs amid growing concerns over money laundering and scams.
The new initiative, announced on December 6, will focus on enforcing anti-money laundering regulations among digital currency exchanges (DCEs) operating crypto ATMs across the country. Australia currently hosts over 1,200 crypto ATMs, making it one of the largest markets globally alongside the United States and Canada.
AUSTRAC CEO Brendan Thomas pointed to mounting evidence that criminals are exploiting these machines for illicit activities, taking advantage of their accessibility and ability to process near-instant, irreversible transactions.
"We're seeing too many Australians falling victim to scams carried out through cryptocurrency, with some losing their life savings," Thomas said. "As cryptocurrency usage grows, criminal exploitation will follow."
While Australia has approximately 400 registered crypto exchanges, only a small number operate ATMs, leaving many machines potentially operating outside regulatory oversight. Under current laws, crypto ATM operators must:
- Register with AUSTRAC
- Conduct Know Your Customer (KYC) checks
- Monitor transactions
- Report cash transactions over AUD 10,000 (USD 6,430)
The task force will work to identify non-compliant operators while strengthening transaction monitoring and reporting requirements. Operators ignoring these obligations face substantial financial penalties, with AUSTRAC promising swift enforcement action.
This increased scrutiny mirrors international trends, as demonstrated by German authorities' recent seizure of 13 crypto ATMs and €50,000 in cash due to compliance violations.
AUSTRAC encourages citizens to report suspicious crypto ATM activity to the National Anti-Scam Centre's Scamwatch and the Australian Cyber Security Centre's ReportCyber.