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Australia’s key financial intelligence unit, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has unveiled plans for a new task force aimed at cracking down on cryptocurrency ATM providers that may be violating anti-money laundering (AML) regulations.
Brendan Thomas, CEO of AUSTRAC, said the accessibility and rapid transaction capabilities of cryptocurrency and crypto ATMs present attractive opportunities for criminal elements seeking to launder money.
“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,” he said in a recent statement on 6 December 2024.
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New Task Force Ensures ATM Operators Adhere To Standards
The newly formed task force will primarily ensure that operators of crypto ATMs adhere to stringent standards that mitigate the risk of illicit funds circulating through these machines.
Presently, Australia hosts several leading crypto ATM providers, including Coinflip with 680 units, Localcoin with 465, and Cryptolink with 75.
Crypto ATM operators are mandated to register with AUSTRAC and comply with several regulatory requirements, such as transaction monitoring and conducting Know Your Customer (KYC) checks.
They must also report any suspicious activities and log cash transactions exceeding $6,500 AUD (approximately 10,000 Australian dollars).
Operators found in violation of these laws face severe repercussions, including substantial financial penalties. Thomas noted the rising stakes given the escalating use of cryptocurrencies, adding that criminal activity is likely to increase as well.
1200 crypto ATMs now operating in Australia: money laundering, scams, avoiding domestic GST. Trump and Musk now pushing crypto currencies big time. This is a growing threat to Australia’s tax system and consumer protections. @swrighteconomy SMH/Age pic.twitter.com/VrG5XYe89N
— Quentin Dempster (@QuentinDempster) December 5, 2024
Meanwhile, penalties for money laundering in Australia would be severe. Offenders can face up to 12 years in prison and fines of up to $102,072 AUD (approximately 158,400 Australian dollars) for standard violations.
In cases where the laundered amount exceeds $644,400 AUD (1 million Australian dollars), the penalties can escalate to 25 years of incarceration and fines up to $214,585 AUD (approximately 333,000 Australian dollars).
Australia has emerged as a significant player in the global crypto ATM market, ranking third behind the United States and Canada.
From just 67 machines in August 2022, the number of crypto ATMs in Australia soared to over 1,302 by recent counts, overtaking Asia’s total despite slow initial uptake. The surge in installations began in late 2022 as private companies increasingly entered the market.
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Australia’s Corporate Regulator Proposes Costly Licensing For Crypto Firms
Earlier this week, Australia’s Securities and Investment Commission (ASIC) unveiled a proposal to impose stringent licensing requirements on crypto firms.
The move aims to classify many digital assets as financial products, mandating firms handling them to obtain appropriate licenses.
Under current Australian laws, businesses offering financial services or dealing in financial products must secure an Australian Financial Services License (AFSL). Additionally, platforms facilitating the trading of these products may require an Australian Market License.
The new rules would extend these requirements to crypto exchanges and many other digital asset firms. Industry experts have expressed concerns about the financial burden these regulations could impose, particularly on smaller firms.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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