On Friday, Australia’s financial crime watchdog, AUSTRAC, unveiled a new cryptocurrency task force designed to monitor and penalize crypto ATM providers that fail to comply with anti-money laundering (AML) regulations.
Strengthening Digital Currency Exchange Standards
AUSTRAC’s initiative targets digital currency exchanges (DCEs) offering crypto ATM services to ensure they meet established compliance standards. The task force’s goal is to prevent the misuse of crypto ATMs for criminal activities, scams, and fraud, by enforcing strict operational practices.
Compliance Requirements for Crypto ATM Providers
According to the AML/CTF Act 2006, all DCEs, including those operating crypto ATMs, must be registered with AUSTRAC. They are also obligated to monitor transactions, verify customer identities through Know Your Customer (KYC) procedures, report suspicious activities (SMRs), and submit reports for cash transactions exceeding $10,000.
AUSTRAC Cracks Down on Non-Compliance
AUSTRAC is intensifying its efforts against crypto ATM providers that disregard these regulatory requirements. AUSTRAC’s CEO, Brendan Thomas, emphasized the need for compliance with anti-money laundering laws, stating that operators who neglect these responsibilities face significant financial penalties.
AUSTRAC’s Long-Term Focus on Reducing Crypto Crime
Thomas further explained that this action marks the beginning of AUSTRAC’s sustained efforts to combat the criminal use of cryptocurrency within Australia, with a focus on this industry throughout the coming year.
Australia’s Growing Crypto Ecosystem
As of now, AUSTRAC has registered approximately 400 digital currency exchange providers. Despite only a few of these operators running crypto ATMs, Australia is home to roughly 1,200 crypto machines, making it the third-largest market globally.
ASIC Steps Up Efforts to Secure Crypto Industry
Australia’s cryptocurrency adoption is on the rise, with about 31.6% of Australians having engaged with cryptocurrencies, including NFTs. In response to this growing sector, Australian Securities and Investments Commission (ASIC) has introduced new licensing rules for crypto exchanges managing significant client assets, requiring them to obtain an Australian Financial Services License (AFSL). This aims to bolster consumer protection.
Efforts to Safeguard Australians from Crypto Scams
In addition, ASIC has sought public feedback on updates to its digital asset guidelines, which clarify how the Corporations Act 2001 applies to digital assets and provide guidance for financial service providers. Earlier this year, Australian authorities uncovered a large-scale crypto scam that affected more than 2,000 digital wallets. The scam employed “approval phishing” tactics and has resulted in the theft of over $4 billion in cryptocurrency worldwide since May 2021
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