AUSTRAC, the Australian financial regulator, has announced a cash transaction limit on crypto ATMs, emphasizing the urgent need for enhanced compliance and combatting illegal activities.
Cash Transaction Limit at Crypto ATMs
AUSTRAC is implementing a new regulation that sets a $5,000 AUD limit on cash transactions at crypto ATMs. This measure, introduced by AUSTRAC's CEO Brendan Thomas, aims to address the increasing misuse of crypto platforms for illegal activities. Taskforces have been created to ensure compliance, focusing on protecting consumers from rogue ATM operators.
New Challenges for Crypto Transactions in Australia
The regulation impacts thousands of crypto transactions throughout Australia, focusing on preventing scams and money laundering. While leading crypto players have yet to comment, there are concerns about challenges related to liquidity. By enforcing strict cash limits, AUSTRAC aims to protect users and reduce illegal crypto usage.
Global Precedents for Crypto ATM Regulations
Similar regulations have been enacted in regions like the US and EU to address the use of crypto ATMs for unlawful purposes. This sets a benchmark for monitoring crypto activities globally. Increased compliance costs for ATM operators are expected, along with potential shifts to alternative means of accessing cryptocurrencies.
The introduction of the $5,000 cash limit on transactions at crypto ATMs could significantly impact the digital currency market in Australia, especially given global trends toward stricter regulation.
