Australia Tightens Grip on Crypto ATMs with New Task Force Initiative

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Author Profile

Share

Copied

Last updated:

December 6, 2024 01:10 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Australia’s financial crime watchdog on Friday launched a cryptocurrency task force to identify and penalize crypto ATM providers violating anti-money laundering laws.

AUSTRAC said the task force aims to ensure digital currency exchanges (DCEs) offering crypto ATM services meet minimum standards. The initiative seeks to enforce strong practices to prevent these machines from being used for scams, fraud or criminal transactions.

Under the AML/CTF Act 2006, DCEs, including crypto ATM providers, must register with AUSTRAC. Additionally, they are required to monitor transactions, verify customer identities (KYC), report suspicious activities (SMRs) and file threshold transaction reports for cash transactions of $10,000 or more.

Australia Watchdog Vows Action Against Crypto ATM Providers Ignoring AML Obligations

AUSTRAC CEO Brendan Thomas said the agency will implement measures against operators who violate the regulations.

“Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime,” he said. “If they’re ignoring those obligations they risk being subject to significant financial penalties and 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. We will be focusing on this industry over the course of next year.”

AUSTRAC has registered about 400 digital currency exchange providers so far. Among these, only a few operate crypto ATMs. Yet Australia boasts around 1200 such machines, ranking third globally in terms of quantity.

AUSTRAC and ASIC Take Steps to Secure Australia’s Growing Crypto Ecosystem

Cryptocurrency adoption is rising quickly in Australia, with an estimated 31.6% of Australians having held or currently holding cryptocurrencies, including many owning NFTs.

Australian regulator ASIC has introduced new licensing rules requiring crypto exchanges managing significant client assets to obtain an AFSL, aiming to strengthen consumer protection.

This week, ASIC invited public feedback on updates to its digital asset guidelines to clarify how the Corporations Act 2001 applies to digital assets and guide related financial services entities.

Earlier this year, Australian authorities uncovered a massive crypto scam targeting locals, affecting over 2,000 digital wallets. The scam used a tactic called “approval phishing,” which has stolen over $4b in crypto globally since May 2021.