Australia to crack down on crypto ATM providers citing risk of money laundering
Australia's National Financial Intelligence Agency has identified crypto as a top priority for next year and is creating a new task force to crack down on crypto ATM providers that violate anti-counterfeiting laws.
In a December 6 statement, Australian Transaction Reports and Analysis Center (AUSTRAC) CEO Brendan Thomas said the government agency is shifting its focus to the cryptocurrency industry by 2025.
“Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and allow for immediate and irreversible transfers,” he said.
“This is the first step in AUSTRAC's focus on reducing cryptocurrency crime in Australia. We will focus on this industry next year.”
According to AUSTRAC, the task force will focus on ensuring that crypto ATM operators meet minimum standards to reduce the risk of illicit cash passing through the machines.
Leading crypto ATM providers in Australia include Coinflip, with 680 ATMs in its stable; Localcoin, with 465; and CryptoLink with 75.
Crypto ATM operators are required to register with AUSTRAC, conduct transaction controls and perform Know Your Customer (KYC) checks on users in advance.
They are also expected to report suspicious activity and submit initial transaction reports for cash deposits and withdrawals of $6,500 (A$10,000).
Thomas said any activity caught in violation of the law “could be subject to significant fines.”
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He added, “As the use of cryptocurrency increases, so does criminal exploitation, which is why this task force works to eliminate unruly high-risk operations.”
Penalties for money laundering in Australia can include up to 12 years in prison and a fine of up to $102,072 (A$158,400), or both.
If the value of the misappropriated funds is more than $644,400 (A$1 million), he faces up to 25 years in prison and a fine of $214,585 (A$333,000), or both.
Australia has emerged as a crypto ATM hub.
Australia is the third largest Bitcoin (BTC) and crypto ATMs hub. Coin ATM Radar data shows more than 1,302 ATMs, up from just 67 in August 2022.
Australia claims to have 400 digital currency exchanges on its books, but only a small number operate crypto ATMs.
Australia has historically been a slow market for crypto ATMs. By the end of 2022, adoption has increased significantly.
Australia has the third largest number of crypto ATMs in the world, after the US and Canada. Source: Coin ATM Radar
By April 2023, Australia's Bitcoin ATM count will surpass that of Asia, which includes major economies such as China, Japan, Singapore and India.
Currently, the US is home to the most global Bitcoin ATMs, with 31,647 machines representing more than 81% of the global market. Canada is in second place representing 7.8% of the global market with 3,022 crypto ATMs.
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