Australian Regulator AUSTRAC Cracks Down on Cryptocurrency ATM Providers

AUSTRAC is taking a strict approach towards cryptocurrency ATM providers in Australia who do not adhere to the country’s anti-money laundering regulations.

According to AUSTRAC’s intelligence, cryptocurrency carries a higher risk for money laundering and has become a popular tool for scams and money-laundering activities.

To combat this issue, AUSTRAC has formed an internal taskforce specifically focused on regulating digital currency exchanges (DCEs) that offer crypto ATM services. The taskforce’s main goal is to ensure that these DCEs follow minimum standards and have strong measures in place to identify and prevent the use of their machines for illegal activities such as fraud or money laundering.

As per the AML/CTF Act 2006, all DCEs, including those with crypto ATM facilities, are required to register with AUSTRAC.

They must also carry out transaction monitoring, have a thorough understanding of their customers through KYC checks, report suspicious activity through suspicious matter reports (SMRs), and submit threshold transaction reports (TTRs) for cash deposits and withdrawals of $10,000 or more.