The Australian Transaction Reports and Analysis Centre (AUSTRAC) has expressed concerns regarding the compliance with AML/CTF regulations by crypto ATM providers. The regulator announced its intention to take action against violators, noting that the number of crypto ATMs in Australia has increased from 23 to 1651 over the past five years.
This is reported by Finway
AUSTRAC’s Warning for Crypto ATM Providers
In its statement, AUSTRAC emphasized that some crypto ATM providers may not be adhering to regulations related to anti-money laundering and counter-terrorism financing. This regulator is a government financial intelligence agency that monitors illegal activities in financial transactions.
In early December 2024, a task force on crypto assets was established within the agency. This new unit aims to analyze the operations of crypto ATM providers, which are part of the digital currency exchange (DCE) category. According to the Anti-Money Laundering and Counter-Terrorism Financing Act, all companies in this category must register with AUSTRAC.
Worrying Trends and Potential Risks
In a new statement, the regulator noted that the task force has identified signs of non-compliance with AML/CTF regulations among crypto ATM providers.
“Worrying trends and signs of suspicious activity have been detected, including transactions that may be related to fraud,” AUSTRAC’s publication states.
Centre Head Brendan Thomas emphasized that the primary task of the regulator is to ensure compliance with certain measures by crypto ATM providers. He noted that this will help minimize the risks of using such points for money laundering and other illegal activities. Thomas also added that AUSTRAC will take action against individual providers but did not disclose specific companies.
It is worth noting that Australia ranks third in the world for the number of crypto ATMs, trailing only the USA and Canada, according to data from Coin ATM Radar, with a current total of 1651 crypto ATMs in the country.