In a decisive move aimed at curbing money laundering activities, Australia has announced a crackdown on crypto ATM providers, as the nation grapples with the rapid rise of cryptocurrency usage. With the third most crypto ATMs globally, regulators are increasingly concerned that these machines could be exploited to facilitate financial crime.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is prioritizing the cryptocurrency sector in its 2025 agenda. The agency’s CEO, Brendan Thomas, has emphasized that “cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers.” This statement reflects the agency’s commitment to mitigating criminal exploitation through the establishment of a dedicated task force.
Currently, leading crypto ATM operators in Australia, including Coinflip and Localcoin, are already subject to compliance measures such as Know Your Customer (KYC) checks and transaction monitoring. However, with the new task force, AUSTRAC aims to ensure that all operators meet strict standards to minimize the risk of illicit cash transactions. The task force is preparing to take significant action against non-compliant operators, with threats of substantial financial penalties looming over those who fail to adhere to regulations.
- Penalties for money laundering in Australia can include:
- Up to 12 years in prison and fines exceeding $102,072 (158,400 Australian dollars).
- For laundered funds exceeding $644,400 (1 million Australian dollars), prison sentences can reach 25 years.
Moreover, Australia’s crypto ATM landscape has expanded rapidly, with over 1,302 machines currently in operation, a dramatic increase from just 67 in August 2022. This growth positions Australia as a regional hub for cryptocurrency, surpassed only by the United States and Canada in crypto ATM presence. Such rapid adoption has raised alarm bells, prompting the government to intervene with stricter regulations aimed at ensuring compliance and safety in the crypto space.
As the sector evolves, AUSTRAC’s initiative signals the government’s proactive approach to safeguarding the financial system against crypto-related crimes. Streaming into 2025, the focus will intensify on enforcing robust compliance among crypto ATM operators, marking a significant shift towards greater financial integrity in the burgeoning cryptocurrency ecosystem of Australia.
