AUSTRAC, an Australian financial intelligence agency, announced a new crackdown on crypto ATMs. Although the regulator hasn’t issued an outright ban, it will significantly scrutinize ATMs for legal compliance.

AUSTRAC called this crackdown the “first step” in the agency’s broader initiative to fight crypto crime.

AUSTRAC to Investigate Crypto ATMs for Enabling Money Laundering

The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced this crackdown via a press release on December 6. According to the regulator, scammers have used crypto ATMs to pursue criminal activities and move illicit funds. AUSTRAC sees crypto ATMs as the optimal funnel for money laundering and driving crypto-related crimes.

“Crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers. Crypto ATM providers need to ensure they are reducing the risks of crime. If they’re ignoring those obligations, AUSTRAC won’t hesitate in taking action,” claimed AUSTRAC CEO Brendan Thomas.

Previously, UK regulators also cracked down on crypto ATMs in 2022, citing similar money laundering claims. Australian law enforcement has been investigating crypto ATMs for some time now. In 2022, the NSW Police sized several cryptocurrency ATMs as a part of an inter-agency raid.

AUSTRAC claimed that only a few crypto firms operate the majority of ATMs in Australia. Thus, the agency is well-equipped to scrutinize potential violators. The regulator also established a special task force for this purpose.

The organization’s CEO called this crackdown “the first step in AUSTRAC’s focus to reduce

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Author: Landon Manning