Australia Puts Crypto ATM Providers &#039, On Notice&#039, Over Money Laundering Problems

Australia’s economic crimes guardian has placed crypto ATM providers “on notice”, warning some such devices may be helping criminals dirty money or mislead victims.

The Australian Transaction Reports and Analysis Centre ( AUSTRAC ) said its crypto taskforce, formed last December, uncovered “worrying trends and indicators of suspicious activity” tied to crypto ATMs, including links to scams and fraud, in a statement released Monday.

Crypto ATMs—also known as kiosks —are physical machines that allow users to buy or sell cryptocurrencies like Bitcoin using cash or accounts, often without the same identity assessments used in traditional finance.

” We want to maintain crypto ATM companies have solid practices to minimise the risk that their systems can be used to launder ugly income or to con and defraud innocent people”, said AUSTRAC CEO Brendan Thomas.

AUSTRAC’s taskforce—made up of regulation, enforcement, and intelligence experts —initially focused on crypto Banks but has since expanded its reach to tackle industry-wide compliance issues.

Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act, all DCEs—including those operating crypto ATMs—must record with AUSTRAC, do KYC checks, check transactions, and report Cautious Matter Reports as well as reports for cash deals over$ 10, 000.

Australia now hosts over 1, 648 bitcoin ATMs—the highest matter in the Asia-Pacific region—up from only 23 in 2019, with Sydney alone accounting for 348, Coin ATM Radar shows.

AUSTRAC’s caution comes as U. S. lawmakers competition to strengthen guardrails around crypto shops as scams cases surge, some involving old victims.

Illinois Senator Dick Durbin last quarter introduced the Crypto ATM Fraud Prevention Act, seeking to cover normal exchange limits at the blockchain ATMs and require mandatory refunds for fraud victims who report scam within 30 days.

Nebraska, meanwhile, has passed the Controllable Electronic Record Fraud Prevention Act, mandating fraud warnings and refund rights for users who report the fraud within 90 days.