AUSTRAC’s New Task Force to Regulate Crypto ATMs
Australia’s financial intelligence agency, AUSTRAC, is ramping up its efforts to regulate the cryptocurrency industry, with a specific focus on crypto ATMs. The agency announced on December 6 that it will create a dedicated task force in 2025 to ensure compliance with Anti-Money Laundering (AML) laws.
AUSTRAC CEO Brendan Thomas highlighted the risks associated with crypto ATMs, stating, “Cryptocurrency and crypto ATMs provide criminals with convenient avenues for laundering money due to their accessibility and the ability to make instant, irreversible transactions.”
The new task force will aim to:
- Ensure crypto ATM operators meet strict compliance standards.
- Reduce the risk of illicit cash transactions passing through the machines.
- Penalize non-compliant operators with significant financial fines or legal actions.
Existing Regulations for Crypto ATM Providers
Australia already requires crypto ATM operators to adhere to stringent regulations, including:
- Registration with AUSTRAC
- Transaction monitoring
- Know Your Customer (KYC) checks for all users
- Suspicious activity reporting
- Threshold transaction reports for cash deposits and withdrawals exceeding AUD 10,000 (approximately $6,500).
Non-compliance could result in heavy penalties. Violators may face fines of up to AUD 158,400 ($102,072) and prison sentences of up to 12 years. For money laundering involving amounts exceeding AUD 1 million ($644,400), penalties could include up to 25 years in prison and fines reaching AUD 333,000 ($214,585).
Australia’s Rapid Growth in Crypto ATM Adoption
Australia has emerged as the third-largest hub for Bitcoin and crypto ATMs worldwide, with 1,302 machines, according to Coin ATM Radar. This growth marks a significant leap from just 67 ATMs in mid-2022.
Leading Crypto ATM Operators in Australia:
- Coinflip: Operates 680 ATMs.
- Localcoin: Manages 465 ATMs.
- Cryptolink: Runs 75 ATMs.
The rapid expansion of private companies in late 2022 contributed to Australia overtaking Asia in Bitcoin ATM adoption. As of April 2023, Australia surpassed major Asian markets, including China, Japan, and Singapore, in the number of operational crypto ATMs.
Global Context:
- The United States dominates the crypto ATM market, hosting 31,647 machines, which account for over 81% of the global total.
- Canada follows with 3,022 ATMs, representing 7.8% of the global share.
AUSTRAC’s Long-Term Goals
The crackdown on crypto ATMs is just the beginning of AUSTRAC’s broader strategy to curb criminal activity in the cryptocurrency space. Brendan Thomas emphasized that as cryptocurrency adoption grows, so does its misuse by bad actors. The task force aims to eliminate high-risk, non-compliant operations and strengthen Australia’s regulatory framework.
