Key Information:
- AUSTRAC’s cryptocurrency task force has identified that certain crypto ATM providers might not be following the mandatory anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.
- Providers of crypto ATMs are required to register with the regulatory body, monitor financial transactions, and carry out customer verification to adhere to the laws in place.
AUSTRAC, Australia’s anti-money laundering supervisor, has officially cautioned crypto ATM operators about their failure to meet necessary compliance standards.
“AUSTRAC’s cryptocurrency taskforce has found that some crypto ATM providers may not have the right anti-money laundering and counter-terrorism (AML/CTF) checks in place,” the agency stated in a release on Monday.
Crypto ATM providers must ensure compliance with the country’s AML/CTF Act 2006 by registering with AUSTRAC, tracking transactions, and performing know-your-customer (KYC) checks.
Currently, Australia holds the distinction of having the highest number of crypto ATMs in the Asia Pacific region, totaling approximately 1,600, a significant increase from just 23 in 2019, as reported by AUSTRAC.
A task force established in December reported troubling patterns and signs of questionable activities, including transactions potentially associated with scams or fraud," said CEO Brendan Thomas.
The regulatory body has been inspired by actions taken by UK authorities to address unlawful crypto ATM operations. In the UK, only sanctioned crypto ATMs are permitted to function; however, none currently operate. The Financial Conduct Authority recently secured a four-year prison sentence for Olumide Osunkoya, aged 46, for illegally managing a crypto ATM network.
