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Australia has the third largest number of crypto ATMs in the world and regulators are worried they could be facilitating financial crime.
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Australia’s national financial intelligence agency has flagged crypto as a priority for the year ahead and is creating a new task force to crack down on crypto ATM providers who may be flouting Anti-Money Laundering laws.
In a Dec. 6 statement, Australian Transaction Reports and Analysis Centre (AUSTRAC) CEO Brendan Thomas said the government agency is shifting focus to the cryptocurrency industry in 2025.
“Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers,” he said, adding:
“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.”
According to AUSTRAC, the task force will focus on ensuring crypto ATM operators meet minimum standards to minimize the risk of illicit cash passing through the machines.
Leading crypto ATM providers in Australia include Coinflip, which has 680 ATMs in its stable; Localcoin, with 465; and Cryptolink, with 75.
Crypto ATM operators are already required to register with AUSTRAC, undertake transaction monitoring, and Know Your Customer (KYC) information checks on users.
They are also expected to report suspicious activity and submit threshold transaction reports for cash deposits and withdrawals of over $6,500 (10,000 Australian dollars).
Thomas said any operations caught flouting the law will “risk being subject to significant financial penalties.”
Related: Crypto ATMs surge 17X in Australia amid concerns over use by bad actors
“As the use of cryptocurrency increases, so too will criminal exploitation, which is why this task force will work to eliminate non-compliant high-risk operations,” he added.
Penalties for money laundering in Australia can include up to 12 years behind bars and up to $102,072 (158,400 Australian dollars) in fines, or both.
If the value of the laundered funds is over $644,400 (1 million Australian dollars), it attracts up to 25 years of jail time and fines of $214,585 (333,000 Australian dollars) or both.
Australia emerging as a crypto ATM hub
Australia is the third-largest hub for Bitcoin (BTC) and crypto ATMs. Coin ATM Radar data shows over 1,302 ATMs, up from just 67 in August 2022.
AUSTRAC has disclosed that 400 digital currency exchanges are registered on its books, but only a small number operate crypto ATMs.
Historically, Australia was a slow market for crypto ATMs. Adoption increased exponentially near the end of 2022 after private firms started piling into the market.
Australia has the third largest number of crypto ATMs in the world, behind the US and Canada. Source: Coin ATM Radar
By April 2023, Australia’s Bitcoin ATM count surpassed Asia’s, which includes major economies such as China, Japan, Singapore and India.
Currently, the US is home to the most global Bitcoin ATMs, with 31,647 machines representing over 81% of the worldwide market. Canada ranks second, representing 7.8% of the global market with 3,022 crypto ATMs.
Magazine: Comeback 2025: Is Ethereum poised to catch up with Bitcoin and Solana?
This article first appeared at Cointelegraph.com News
