Australia is tightening its grip on cryptocurrency financial crime with the launch of a new task force targeting crypto ATM providers.
AUSTRAC, the country’s financial intelligence agency, is leading this effort, focusing on ensuring strict compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
With over 1,308 cryptocurrency ATMs operating across Australia, the machines have become a popular way for people to buy and sell digital currencies (Source: CoinATMRadar).
However, criminals are increasingly exploiting them for money laundering and scams. Cryptocurrency transactions are often anonymous, making it difficult to trace illegal activities. This has raised concerns about the machines being used to clean “dirty money” derived from criminal operations.
Crypto ATMs Pose a Risk
AUSTRAC’s data shows that cryptocurrency presents a significant risk for money laundering. Crypto ATMs, which allow users to exchange cash for digital currencies, are particularly vulnerable. Criminals are exploiting these machines for illegal activities such as scams and money-making operations, which involve transferring illicit funds across borders.
Brendan Thomas, AUSTRAC’s CEO, explained that cryptocurrency’s anonymity and instant transactions make it appealing to criminals.
“We’re seeing too many Australians lose their savings to crypto scams. Criminals are taking advantage of the system, and we need to stop it,” Thomas said.
The New Task Force
AUSTRAC’s newly formed task force aims to oversee compliance across the 400+ registered digital currency exchange providers in Australia.
This includes conducting audits, investigating suspicious activities, and taking enforcement actions against businesses that fail to follow the rules. Operators who are found to be non-compliant face significant fines, business closures, or criminal charges.
The initiative comes in response to a growing trend of cryptocurrency misuse for scams. According to a 2023 report by the Australian Competition and Consumer Commission (ACCC), Australians lost over AUD 200 million to crypto-related scams, marking a sharp increase from the previous year.
The task force is part of AUSTRAC’s broader 2024 regulatory agenda. Besides focusing on cryptocurrency, the agency is targeting other high-risk sectors such as banking, gambling, and remittances. AUSTRAC is working to ensure these industries adopt stronger AML/CTF measures and modern monitoring systems.
AUSTRAC’s…
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