Australia to tighten regulations on crypto ATM providers over money laundering concerns.

Australia, the world's third-largest market for crypto ATMs, is under scrutiny as regulators express concerns about their potential role in facilitating financial crime.

Australia to tighten regulations on crypto ATM providers over money laundering concerns.

The country’s financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has identified cryptocurrency as a top priority for 2025 and is forming a dedicated task force to address compliance issues within the crypto ATM sector.

In a statement on Dec. 6, AUSTRAC CEO Brendan Thomas emphasized the agency’s focus on minimizing the criminal use of cryptocurrency in the coming year.

“Cryptocurrency and crypto ATMs provide criminals with a convenient way to launder money due to their accessibility and the near-instant, irreversible nature of transactions,” Thomas said, adding:

 “This marks the first step in our efforts to reduce illicit activities in Australia’s cryptocurrency landscape. The task force will concentrate on ensuring compliance across the industry.”

The task force will ensure that crypto ATM operators adhere to stringent standards to prevent illicit cash flows. Leading Australian providers include Coinflip, with 680 ATMs, Localcoin with 465, and Cryptolink with 75.

Crypto ATM operators are already required to register with AUSTRAC, conduct transaction monitoring, and implement Know Your Customer (KYC) checks, report suspicious activities and submit threshold transaction reports for cash deposits or withdrawals exceeding $6,500 (10,000 AUD).

Thomas warned that non-compliant operators risk severe financial penalties:
“As cryptocurrency adoption grows, so does the risk of criminal exploitation. This task force aims to eliminate high-risk, non-compliant operations.”

Penalties for money laundering in Australia are steep. Offenders face up to 12 years in prison and fines of $102,072 (158,400 AUD). For laundered funds exceeding $644,400 (1 million AUD), penalties increase to 25 years of imprisonment and fines of $214,585 (333,000 AUD).

Australia’s crypto ATM market has expanded rapidly, with over 1,302 machines recorded in 2023, up from just 67 in mid-2022, according to Coin ATM Radar. The surge in adoption was driven by private firms entering the market, with Australia surpassing Asia's Bitcoin ATM count by April 2023.

Globally, the United States leads with 31,647 Bitcoin ATMs, accounting for over 81% of the market. Canada ranks second with 3,022 machines, representing 7.8% of the global share.

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow