Australia establishes a special task force against money laundering through cryptocurrency ATMs, amid a significant increase in the number of ATMs from 67 to over 1,300 in just over a year.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced it will focus on the cryptocurrency industry in 2025, particularly the operations of cryptocurrency ATMs. The agency is concerned about the heightened risk of money laundering due to the popularity of this type of transaction.
The event takes place in Australia on December 6. Stakeholders include AUSTRAC, leading cryptocurrency ATM operators like Coinflip, Localcoin, Cryptolink, and the cryptocurrency user community in Australia. This decision comes amid a surge in the number of cryptocurrency ATMs in Australia, from 67 machines in August 2022 to over 1,302 machines currently, making Australia the third-largest center in the world for cryptocurrency ATMs, behind the USA and Canada.
Australia has the third-largest number of cryptocurrency ATMs in the world, after the USA and Canada. Source: Coin ATM Radar Challenge of managing digital cash flow
AUSTRAC stated that cryptocurrency and cryptocurrency ATMs are attractive channels for money laundering due to their accessibility, rapid transaction speed, and irreversibility. Mr. Brendan Thomas, CEO of AUSTRAC, emphasized that this is the first step in the agency's strategy to mitigate the use of cryptocurrency for criminal purposes.
The newly established task force will focus on ensuring cryptocurrency ATM operators comply with existing regulations, including registration with AUSTRAC, conducting transaction monitoring, verifying customer information (KYC), and reporting suspicious activities. Cash transactions over AUD 10,000 (equivalent to USD 6,500) must also be reported.
Increased oversight is deemed necessary as the cryptocurrency market in Australia is rapidly developing. By April 2023, the number of Bitcoin ATMs in Australia had surpassed those in major Asian economies like China, Japan, Singapore, and India.
Currently, there are about 400 cryptocurrency exchanges registered with AUSTRAC, however, only a small portion of them operate cryptocurrency ATMs.
The strong growth is partly due to the entry of private companies at the end of 2022. However, this comes with challenges in managing and controlling risks, particularly money laundering risks.
AUSTRAC warns that any activity violating the law will face severe penalties, including prison sentences of up to 12 years and fines of up to AUD 158,400 (equivalent to USD 102,072) for money laundering cases under AUD 1 million. For cases involving larger amounts, sentences can reach up to 25 years in prison and fines of AUD 333,000 (equivalent to USD 214,585).
