From cointelegraph by Stephen Katte

Australia’s national financial intelligence agency flagged crypto as a priority for the year ahead and is creating a task force to crack down on crypto ATM providers that may be flouting Anti-Money Laundering laws.

In a Dec. 6 statement, Australian Transaction Reports and Analysis Centre (AUSTRAC) CEO Brendan Thomas said the government agency is shifting its focus to the cryptocurrency industry in 2025.  

“Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers,” he said, adding:

“This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia. We will be focusing on this industry over the course of next year.”

According to AUSTRAC, the task force will focus on ensuring crypto ATM operators meet minimum standards to negate the risk of illicit cash passing through the machines.

Leading crypto ATM providers in Australia include Coinflip, which has 680 ATMs in its stable; Localcoin, with 465, and Cryptolink, with 75.

Crypto ATM operators are already required to register with AUSTRAC, undertake transaction monitoring and implement Know Your Customer (KYC) information checks on users.

They are also expected to report suspicious activity and submit threshold transaction reports for cash deposits and withdrawals of over $6,500 (10,000 Australian dollars).

Thomas said any operations caught flouting the law will “risk being subject to significant financial penalties.”

Related: Crypto ATMs surge 17X in Australia amid concerns over use by bad actors

“As the use of cryptocurrency increases, so too will criminal exploitation, which is why this task force will work to eliminate non-compliant high-risk operations,” he added.

Penalties for money laundering in Australia can include up to 12 years behind bars, more than $100,000 in fines, or both.

If the value of laundered funds exceeds $644,400, jail sentences can be up to 25 years and fines as much as $214,585, or both.

Australia emerging as a crypto ATM hub

Australia is the third-largest hub for Bitcoin BTC$98,830 and crypto ATMs. Coin ATM Radar data shows over 1,302 ATMs, up from 67 in August 2022. 

AUSTRAC has disclosed that 400 digital currency exchanges are registered on its books, but only a few operate crypto ATMs.

Australia was a slow market for crypto ATMs, but adoption increased exponentially near the end of 2022 after private firms began piling into the market.

By April 2023, Australia’s Bitcoin ATM count surpassed Asia’s, which includes major economies such as China, Japan, Singapore and India.

The US has the most Bitcoin ATMs, with 31,647 machines representing over 81% of the global market. Canada ranks second, at 7.8% of the market with 3,022 crypto ATMs.