Australia targets non-compliant crypto ATM operators with new task force

by

As a seasoned analyst with extensive experience in the financial sector and a keen eye for regulatory trends, I find the recent move by AUSTRAC to crack down on non-compliant cryptocurrency ATM providers in Australia both prudent and necessary.

Australia sets up an enforcement team to deal with non-compliant cryptocurrency ATM service providers regarding their adherence to the country’s anti-money laundering regulations.

On December 6th, the Australian Transaction Reports and Analysis Centre (AUSTRAC) cautioned operators of cryptocurrency Automated Teller Machines (ATMs). They emphasized that disregard for anti-money laundering regulations could lead to legal repercussions, including enforcement actions and fines.

Data from Coin ATM Radar indicates that Australia ranks as the third-largest global location for Bitcoin and crypto automated teller machines (ATMs), boasting over 1,300 functioning units. Yet, AUSTRAC estimates a more modest figure of around 1,200, suggesting that only a limited number of Australia’s approximately 400 registered digital currency trading platforms manage these ATMs, thereby attracting increased regulatory attention.

As per the statement of AUSTRAC CEO Brendan Thomas, cryptocurrencies and crypto Automated Teller Machines (ATMs) have emerged as convenient channels for criminal activities. This is largely due to their accessibility and the ability they provide for fast, irrevocable transactions.

Therefore, over the coming year, our main objective will be to target and eliminate risky, illegal cryptocurrency transactions within Australia, with the aim of minimizing criminal abuse of digital currencies in the country.

“We’re seeing too many Australians falling victim to scams carried out through cryptocurrency, […] As the use of cryptocurrency increases, so too will criminal exploitation, which is why this taskforce will work to eliminate non-compliant high-risk operations.”

Brendan Thomas, AUSTRAC CEO

Operators of Cryptocurrency Automated Teller Machines (ATMs) in Australia are required to abide by anti-money laundering rules. This includes registering with AUSTRAC, performing customer identity checks, monitoring transactions, and reporting any suspicious activities, including cash transactions exceeding 10,000 AUD ($6,430). In simpler terms, they must follow regulations, verify their customers, keep track of transactions, and flag unusual activities that involve large sums of money.

The task force is responsible for keeping an eye on the cryptocurrency sector, making sure that operators of Automated Teller Machines (ATMs) adhere to these regulations, thus reducing potential risks associated with these machines, which might include aiding money laundering, fraudulent activities, and other illegal operations.

The latest advisory echoes AUSTRAC’s viewpoint that digital currencies and exchanges carry substantial threats related to money laundering and terrorism financing. In their 2024 Risk Assessment Report, they categorized cryptocurrencies as a high-risk avenue for illegal activities. They cautioned that these risks are likely to intensify over the next three years.

Besides Australia, other regions are also taking steps to oversee cryptocurrency Automated Teller Machines (ATMs) to combat illegal activities. For instance, German authorities seized 13 such machines in a recent operation and issued a warning that unauthorized operators could face stiff penalties, including imprisonment for up to five years.

In much the same vein, when it comes to a money laundering investigation involving an unlawful business in the UK, the Financial Conduct Authority stated that no cryptocurrency Automated Teller Machines (ATMs) are currently operating within the legal framework of the country.

Read More

2024-12-06 11:17