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Australia’s financial crimes watchdog has put digital asset ATM operators on notice over a lack of anti-money laundering
and counter-terrorism financing (AML/CFT) checks.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) issued the warning on Monday amid a spike in ‘crypto’ ATM usage in the country, which it says has provided fertile grounds for scammers and other criminals.
“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” commented AUSTRAC CEO Brendan Thomas.
Thomas set up a new task force in December 2024 to investigate ATM operators in the country and ensure they meet the minimum standards imposed by regulators. It was also mandated to ensure that these ATMs have robust practices to identify and stop illicit activities such as fraud, scams and money laundering.
“We’re seeing too many Australians falling victim to scams carried out through cryptocurrency, and we’ve heard of some victims losing their life savings, which is just heartbreaking,” Thomas said at the time.
The task force’s investigation has revealed that many ATM operators have been falling short of their regulatory obligations, AUSTRAC says. Thomas indicated that the task force found “worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”
Under Australia’s law, ‘crypto’ ATM operators must monitor all transactions, report any suspicious activities, complete Know Your Customer (KYC) checks on all users, and submit reports to AUSTRAC for cash transactions worth more than AUD10,000 (US$6,300).
Australia has become one of the world’s largest markets for ‘crypto’ ATMs. According to Coin ATM Radar, there are 1,655 ATMs in the country, with only Canada and the United States having more; the latter is the runaway leader with nearly 30,000 ATMs.
According to AUSTRAC, the sector has recorded explosive growth in the past three years. In 2019, the country only had 23 ATMs, a number that had grown to 60 in 2022. Since then, the numbers have exploded, with the machines available in malls, gas stations, and other convenient locations. Sydney alone has 348 ATMs, which is more than every European country except Spain.
As ATMs’ popularity rises, authorities are sounding an alarm over their use in crime. In the U.S., scammers have targeted the elderly, whether by threatening them or by luring them with fake investments or promises of love and romance. They then have their victims deposit cash on these ATMs and send it to them in BTC. Last week, police in Ohio revealed that such crimes have spiked in the state.
This has led legislators to introduce new laws to force ATM operators to stamp out crime from their machines. A month ago, Sen. Dick Durbin (D-IL) tabled the Crypto ATM Fraud Prevention Act in Senate, which requires operators to issue full refunds for losses reported to the police within 30 days. They must also bar new users from transacting over $2,000 a day.
ATM operators say any new law must not bar Americans from accessing digital assets.
“We support legislation that includes strong and consistent protections for consumers, while preserving their right to access digital currencies,” said CoinFlip, one of the three dominant operators in the US.
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