Australia’s National Financial Intelligence Agency has identified cryptocurrencies as a priority this year and is forming a new task force to crack down on cryptocurrency ATM providers that may be violating anti-money laundering laws.
In a statement on December 6, Australian Transaction Reporting and Analysis Center (AUSTRAC) CEO Brendan Thomas said the government agency would shift its focus to the cryptocurrency industry in 2025.
“Cryptocurrencies and cryptocurrency ATMs are an attractive vehicle for criminals looking to launder money because they are widely accessible and allow for near-instantaneous, irreversible transfers,” he added.
“This is the first step in AUSTRAC’s focus to reduce criminal use of cryptocurrencies in Australia. “We will be focusing on this industry over the next year.”
According to AUSTRAC, the task force will focus on ensuring that cryptocurrency ATM operators meet minimum standards to minimize the risk of illicit cash passing through their machines.
Australia’s leading cryptocurrency ATM provider is Coinflip, which has 680 ATMs in its stable. Local Coin (465); and Cryptolink has 75.
Cryptocurrency ATM operators are already required to register with AUSTRAC, conduct transaction monitoring and perform know-your-customer (KYC) information checks on users.
You must also report any suspicious activity and file transaction reports with a limit on cash deposits and withdrawals of more than $6,500 (AUD $10,000).
Thomas said any business caught breaking the law “risks significant financial penalties.”
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“As the use of cryptocurrencies increases, criminal exploitation will also increase. That’s why the task force is working to eliminate non-compliant, high-risk operations,” he added.
Punishments for money laundering in Australia can include up to 12 years in prison, a fine of up to $102,072 (A$158,400), or both.
If the value of the laundered funds exceeds $644,400 (A$1 million), you could face up to 25 years in prison, a fine of $214,585 (A$333,000), or both.
Australia emerging as a cryptocurrency ATM hub
Australia is the third largest hub for Bitcoin (BTC) and cryptocurrency ATMs. The number of ATMs increased from 67 in August 2022 to more than 1,302, according to Coin ATM Radar data.
AUSTRAC said there are 400 digital currency exchanges on its books, but only a small number operate cryptocurrency ATMs.
Historically, Australia has had a weak cryptocurrency ATM market. Adoption grew exponentially toward the end of 2022 after private companies began entering the market.
Australia has the third largest number of cryptocurrency ATMs in the world, after the United States and Canada. Source: Coin ATM Radar
By April 2023, the number of Bitcoin ATMs in Australia surpassed that in Asia, which includes major economies such as China, Japan, Singapore, and India.
Currently, the United States is home to the most global Bitcoin ATMs, with 31,647 Bitcoin ATMs, accounting for over 81% of the global market. Canada ranked second with 3,022 cryptocurrency ATMs, accounting for 7.8% of the global market.
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