Regulators in Australia are stepping up oversight of the cryptocurrency sector with a new task force aimed at cracking down on illegal crypto ATM operators.
According to a recent statement from the Australian Transaction Reports and Analysis Centre (AUSTRAC), the agency has created an internal task force to oversee crypto ATM operators and crack down on those who fail to comply with local mandates.
Australia has witnessed an uptick in cryptocurrency-related crimes, with bad actors exploiting the anonymity and rapid transaction capabilities of digital assets.
These crimes range from money laundering and fraud to the use of money mules in facilitating illicit activities, according to intelligence data cited by AUSTRAC.
Notably, criminals often misuse crypto ATMs, which AUSTRAC CEO Brendan Thomas described as “attractive avenues for criminals” due to their accessibility and ability to facilitate instant and irreversible transfers.
Such activities are expected to increase as crypto adoption grows, Thomas noted, stating:
We’re seeing too many Australians falling victim to scams carried out through cryptocurrency, and we’ve heard of some victims losing their life savings, which is just heartbreaking. As the use of cryptocurrency increases, so too will criminal exploitation.
To minimize these risks, over the next year, the task force will work to ensure that crypto ATM operators comply with Australia’s anti-money laundering and counter-terrorism financing laws.
This includes verifying that operators are registered with AUSTRAC, conducting thorough Know Your Customer (KYC) checks, monitoring transactions for suspicious activity, and reporting large cash deposits or withdrawals exceeding AUD 10,000 (approximately $6400).
Failure to comply with these requirements would lead to “significant financial penalties,” Thomas continued, emphasizing that “AUSTRAC won’t hesitate in taking action.”
“This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia,” he added.
Australia currently ranks third globally in the number of crypto ATMs, with data from Coin ATM Radar indicating a total of 1,308 machines, with Sydney and Melbourne hosting the highest numbers.
However, the agency claims that only a small fraction of these machines are operated by registered operators.
Australia is keeping the crypto sector in check
Australia remains cautious of the crypto sector and has time and again issued warnings about the various risks involved with this rapidly expanding asset class.
Earlier this year, the Australian Securities and Investments Commission (ASIC) warned about the speculative nature of cryptocurrencies ahead of the launch of Bitcoin exchange-traded funds (ETFs) on the Australian Stock Exchange (ASX).
ASIC has also been going after crypto companies, which it believes have been offering unregistered securities.
Meanwhile, in its 2024 risk assessment report, AUSTRAC flagged cryptocurrencies as a “high-risk” tool that could promote money laundering activities.
Australia’s strict stance on cryptocurrencies comes as the nation has witnessed a surge in crypto crimes.
An August report from the Australian Federal Police found that locals lost over AUD$180 million to crypto investment scams in just 12 months.
During the same month, ASIC took down over 600 websites that were allegedly promoting crypto-related scams.
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