Australia’s financial intelligence agency, AUSTRAC, confirmed today (Friday) that it has established an internal task force to crack down on cryptocurrency ATMs that do not comply with local money laundering rules.
Cryptocurrency—A Priority for 2025
AUSTRAC’s CEO, Brendan Thomas, further emphasized that cryptocurrency will be among the agency’s top priorities in 2025.
“This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia,” Thomas stated. “We will be focusing on this industry over the course of next year.”
The move came after the agency identified cryptocurrencies as having heightened risks of money laundering and being increasingly used for money laundering, scams, and money mule activities.
There are about 400 AUSTRAC-registered digital currency exchange providers in Australia, but only a small number operate crypto ATMs. However, the country has 1,200 operating crypto ATMs, the third-highest number globally.
According to AUSTRAC, all these crypto ATM operators must meet minimum standards and have robust practices to tackle scams conducted through their machines. The local anti-money laundering and counter-terror financing laws also mandate these crypto ATM operators to undertake transaction monitoring, conduct KYC checks on customers, report suspicious activities, and submit threshold reports for cash deposits and withdrawals above AU$10,000.
“Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and facilitate near-instant and irreversible transfers,” Thomas added. “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.”
Recently, the Australian Securities and Investments Commission has released a consultation paper and is seeking feedback on proposed crypto regulations.
Rising Scams Using Crypto ATMs
Finance Magnates earlier reported that Bitcoin ATM scams reached US$110 million in 2023, rising tenfold since 2020.
Meanwhile, AUSTRAC is not the only agency to flag the use of crypto ATMs. Earlier this year, Germany’s BaFin cracked down on a network of illegal crypto ATMs and seized €25 million in cash. Similarly, the United Kingdom’s Financial Conduct Authority closed 26 crypto ATMs operating illegally in 2023.
Despite these crackdowns, experts believe there is massive growth potential for the cryptocurrency ATM sector. Scott Buchanan, the COO of Bitcoin Depot, noted that the global crypto ATM market was estimated at $182.1 million in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 63.4 percent from 2024 to 2030. In 2024 alone, over 2,500 new crypto ATMs have been installed globally, indicating a strong upward trajectory for the market following the dip in 2022.
This article was written by Arnab Shome at www.financemagnates.com.
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