- AUSTRAC forms a task force to address the misuse of cryptocurrency ATMs.
- New measures aim to curb money laundering and financial crimes involving cryptocurrencies.
What happened: Australian regulator’s crypto clampdown
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced the establishment of an internal cryptocurrency task force to tackle the misuse of cryptocurrency ATMs for criminal activities. AUSTRAC’s intelligence indicates that cryptocurrencies are increasingly being used for money laundering, scams, and money mule activities. The task force will ensure digital currency exchanges (DCEs) providing crypto ATM services comply with Australia’s anti-money laundering (AML) laws, including transaction monitoring, customer due diligence, and suspicious activity reporting.
Also read: US sanctions Russian exchanges for money laundering
Also read: German authorities seise $28M in cryptocurrency ATM operation
Why it is important
This move by AUSTRAC is significant as it represents a proactive approach to mitigate the risks associated with the growing use of cryptocurrencies for illicit purposes. By enforcing compliance with AML regulations, AUSTRAC aims to reduce the attractiveness of cryptocurrency ATMs for criminals seeking to launder money through rapid and irreversible transactions. This initiative is particularly crucial given the rapid increase in the number of crypto ATMs in Australia, which currently stands at 1,200, the third-highest globally. The task force’s efforts will focus on eliminating non-compliant operations and reinforcing the integrity of Australia’s financial system, protecting consumers and the economy from the adverse effects of cryptocurrency-related crimes. This regulatory step underscores the broader global trend towards stricter cryptocurrency regulation and highlights the need for a coordinated international response to combat financial crimes in the digital age.
