Australian Regulators Say ‘Worrying Trends’ Arising With Crypto ATMs, Put Providers ‘On Notice’

Australian regulators are cracking down on the country’s more than one thousand crypto ATMs amid concerns over scams and fraud.

In a new announcement, the Australian Transaction Reports and Analysis Centre (AUSTRAC) is putting crypto ATM providers on notice, saying that some firms may be in violation of anti-money laundering and counter-terrorism (AML/CTF) provisions.

AUSTRAC’s CEO Brendan Thomas says that a task force set up in December to investigate crypto ATMs has found evidence of possible illegal behavior.

“The task force has been busy engaging with businesses to understand the risks in their sector and assess their compliance with the law. It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”

The increased scrutiny comes as crypto ATMs have skyrocketed in number, from 23 in 2019 to approximately 1,600 around Australia.

The vast majority of transactions involve cash deposits to buy Bitcoin (BTC).

Thomas says that AUSTRAC plans to work with crypto ATM providers to ensure they bring their operations into compliance with financial laws, and he also warns of possible enforcement action.

“We want to ensure crypto ATM providers have robust practices to minimize the risk that their machines can be used to launder dirty money or to scam and defraud innocent people. We will continue to work with [the] industry to raise standards, but we will also take action against operators who don’t comply.”

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