AUSTRAC Warns Crypto ATM Providers: Comply or Face Consequences
AUSTRAC, Australia’s financial intelligence agency, has issued a stern warning to crypto ATM providers.Those who fail to comply with anti-money laundering (AML) rules will face legal action.The agency’s cryptocurrency task force has detected suspicious transactions and fraud, especially with the rise in crypto ATMs.
Since december, AUSTRAC has been working with businesses to ensure they follow AML and counter-terrorism financing regulations. CEO Brendan thomas stated, “We will support industry compliance but will take action against non-compliant operators.”
Australia now boasts the largest crypto ATM market in the Asia-Pacific, with 1,648 machines, up from just 23 in 2019. Most ATMs accept cash for Bitcoin purchases, raising concerns about potential misuse. AUSTRAC requires operators to register and adhere to AML/CTF rules, including transaction monitoring and customer identity verification. Non-compliant companies may face steep fines. Thomas emphasized, “We will enforce standards and penalize those who don’t comply.”
Some Australians have lost life savings due to fraud. Operators must register with AUSTRAC and follow strict guidelines. This crackdown comes as the global crypto ATM market slows due to regulatory pressures. Coin ATM Radar reports over 1,000 Bitcoin ATMs were removed globally in February.
The U.S. leads with 78% of global crypto ATMs, followed by Canada at 9.2%. Australia and Europe each hold over 4% of the global network.
With 1,648 ATMs, Australia leads the region. Sydney alone has 348 machines. AUSTRAC warns of severe penalties for non-compliance. This move aligns with a global slowdown in the crypto ATM market.
- AUSTRAC warns of legal action for non-compliance.
- Australia has 1,648 crypto ATMs, up from 23 in 2019.
- Global crypto ATM numbers have decreased by 2,062 since late 2022.
For more details, visit AUSTRAC’s website.