Australia Launches Task Force to Regulate Crypto ATM Providers

Australia launches a task force to regulate crypto ATM providers and ensure compliance with anti-money laundering laws to prevent scams and fraud.

Australia has launched a task force to crack down on cryptocurrency ATM providers who fail to comply with anti-money laundering laws. AUSTRAC, the Australian Transaction Reports and Analysis Centre, leads this effort. It is the government agency responsible for preventing criminal misuse of the financial system. AUSTRAC stated that money laundering is highly likely to occur through cryptocurrencies. Additionally, it is now common in con and other unlawful practices.

This new AUSTRAC task force will make certain that DCEs that offer services of crypto ATMs will adhere to high standards. The aim is to ensure that these machines do not contribute to scams, fraud, and other unlawful deeds. DCEs must register with AUSTRAC under the AML/CTF Act 2006 and follow specific obligations as a business. This includes transaction monitoring, carrying out Your Customer (KYC), and reporting on strange activities.

AUSTRAC to Target High Risk Crypto ATM Providers

AUSTRAC CEO Brendan Thomas underlined that intensification of monitoring is required. He also noted that crypto ATMs are of interest to criminals as they are easy to access and perform instant, irreversible transactions. He said that, unfortunately, a large number of Australians have become victims of scams related to cryptocurrency. Some individuals have lost their entire fortune, which Thomas said is sad.

AUSTRAC claims that with the increasing use of cryptocurrency, the risk of being exposed to exploitation also increases. The task force wants to get rid of the high-risk operators and encourage compliance with the law. Those providers who are defaulting in their duties may be subjected to heavy fines. As a result, AUSTRAC will continue to take robust enforcement action against businesses that fail to meet regulatory requirements.

Recently, Australia has observed a massive surge in the use of cryptocurrency ATMs as their number has increased sixteenfold within two years. This has made Australia the third largest country to have crypto ATM with over 1,200 such machines. At the moment, approximately 400 DCEs are known to be listed with AUSTRAC, although most of them have a couple of crypto ATMs each.

AUSTRAC is also in the process of producing guidance to assist DCEs in understanding and managing financial crime risks. Furthermore, these resources are intended to help operators to track transactions and to identify potentially criminal events. If crypto ATM providers fail to meet AML/CTF obligations, they may suffer enforcement actions.