Australia Targets Crypto ATMs Over Money Laundering Risks

Jimmy Aki
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In a move to counter money laundering risks, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced plans to focus on crypto ATMs and their operators in 2025. The centre is increasing scrutiny of these machines due to concerns about their potential use in financial crimes.

Australia Tightens Regulations on Crypto ATMs

In a statement on December 6, AUSTRAC CEO Brendan Thomas highlighted the vulnerability of crypto ATMs, noting they provide “attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers.”

AUSTRAC’s new task force will enforce strict standards for crypto ATM operators.

Operators must adhere to Anti-Money Laundering (AML) laws, including registering with AUSTRAC, conducting Know Your Customer (KYC) checks, monitoring transactions, and reporting suspicious activities. They must also report transactions exceeding $6,500 (10,000 AUD).

Operators who fail to comply with these standards could face severe consequences. As per AUSTRAC, penalties for money laundering include fines up to $102,072 (158,400 AUD) or prison terms of up to 12 years.

For offenses involving amounts exceeding $644,400 (1 million AUD), penalties increase to fines of $214,585 (333,000 AUD) and up to 25 years in jail.

Despite already having 1,302 Bitcoin ATMs, the third-largest count globally after the U.S. and Canada, Australia has historically lagged in crypto ATM adoption.

A surge in installations occurred in late 2022, with the country surpassing Asia in April 2023. Leading providers include Coinflip (680 ATMs), Localcoin (465), and Cryptolink (75).

Rising Concerns About Crypto Crime

The rapid rise in crypto ATM installations has coincided with concerns over their misuse. AUSTRAC reported that while 400 digital currency exchanges are registered in Australia, only a fraction operate crypto ATMs.

According to Coin ATM Radar, the U.S. dominates the crypto ATM market, housing over 81% of global installations, while Canada ranks second with 3,022 machines. As crypto ATMs expand their presence in Australia, regulators are determined to balance innovation with security.

This move aligns with AUSTRAC’s ongoing efforts to regulate the cryptocurrency industry. Thomas stated, “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.”

The push for stricter regulations on crypto ATMs aligns with broader concerns about the lack of clear laws in Australia’s cryptocurrency market.

According to a recent survey by Swyftx, many Australian investors are hesitant to participate in the crypto space due to the absence of strong regulations, with nearly one-third stating they would consider investing if clearer rules were introduced.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.