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- Crypto ATMs in Australia surge, raising concerns over money laundering and fraud.
- AUSTRAC urges crypto ATM operators to comply with AML/CTF regulations to avoid penalties.
- Australia’s crypto ATM growth contrasts with global decline, as over 1,000 ATMs were decommissioned.
Australia’s financial intelligence agency, AUSTRAC, has expressed concerns about the increase in cryptocurrency ATMs in its jurisdiction regarding higher levels of suspicious transactions and fraud. The agency set up a cryptocurrency team in December to engage with businesses and firms to help them navigate AML/CTF compliance. The task force’s findings, detailed in a March 31 press release, show concerning patterns of potential criminal activities with these machines.
The CEO of AUSTRAC, Brendan Thomas, indicated that the agency has stated helping firms in the crypto space come into compliance. However, it also made it very clear that firms that do not come into compliance shall face the consequences. He pointed out that entities that fail to adhere to AML and CTF laws would face severe consequences as the agency is set to take more enforcement actions in the coming months.
“We will continue to work with industry to raise standards, but we will also take action against operators who don’t comply.”
Brendan Thomas, AUSTRAC CEO
Crypto ATMs and Money Laundering
Australia has the highest number of ATMs across the Asia-Pacific region, with 1,648 cryptocurrency machines within the country’s borders today. This has significantly increased from 23 in 2019 to 60 in 2022. Currently, there are 348 ATMs in Sydney, and most of them allow customers to deposit cash for Bitcoins. These machines, which are friendly to the users, have been hailed with suspicion. Since they can be used to transfer illicit funds. Hence, facilitating money laundering by criminals.
AUSTRAC reported that this has caused an upsurge in scams or fraud instances, some of which have made Australians lose their life savings to the cryptocurrency ATMs. The agency explained that the majority of them are used for crime purposes, and potential offenders can utilize them for such intents as embezzlement of money or other unlawful actions.
Regulations for ATM Operators
The use of Crypto ATMs in Australia is very popular. So every operator of such machines must be registered with AUSTRAC and must comply with AML/CTF rules. Policies in this area entail undertaking financial transactions, confirming customer identities, and, in particular, filing complaints of questionable activities. The agency has pointed out that carriers that do not adhere to these measures may be liable to hefty penalties.
Australia has recently seen a rising interest in its crypto ATM business. More countries have slowed down on the use of unregulated crypto ATMs worldwide. The Coin ATM Radar reported that more than 1,000 Bitcoin ATMs got dismantled across the world in February. The total figure has decreased by over 2,062 since the end of the year 2022.
Australia also continues to be a significant market player. Thus, it accounts for over 4% of the global crypto ATMs. The US ranks at the top throughout the globe. It still owns 78% of all crypto ATMs throughout the world. The AML agency’s enforcement measures have the intention to safeguard customers and maintain the digital currency market’s stability.
