Australia's financial crime regulator AUSTRAC has issued a warning to cryptocurrency ATM providers about risks of their machines being linked to fraud and money laundering.
AUSTRAC Announcement and Its Implications
AUSTRAC announced that its cryptocurrency task force has detected worrying trends and signs of suspicious activities associated with cryptocurrency ATMs, including connections to scams and fraud. AUSTRAC CEO Brendan Thomas emphasized the importance of establishing sound operating regulations to reduce the risk of the machines being used for illegal purposes.
Crypto ATM Regulation in Australia
Under Australia's Anti-Money Laundering and Counter-Terrorism Financing Act, all Digital Currency Exchanges, including crypto ATM operators, must register with AUSTRAC, conduct Know Your Customer checks, monitor transactions, and file Suspicious Matter Reports along with cash transaction reports exceeding $10,000. Currently, Australia hosts over 1,648 cryptocurrency ATMs.
Measures and Initiatives Outside Australia
In February, a group of U.S. senators introduced a bill for the Crypto ATM Fraud Prevention Act, aiming to enhance transaction transparency and tighten federal regulations. In August, Germany's financial authority charged 13 unlicensed crypto ATMs.
The spread and use of cryptocurrency ATMs necessitate stricter regulations to curb illegal activities. AUSTRAC and other countries are actively working on frameworks to ensure security in the cryptocurrency industry.
