Nikolas Sargeant
Australia's financial crime watchdog, AUSTRAC, has unveiled a specialized task force designed to scrutinize and regulate cryptocurrency ATM providers, signaling a significant escalation in the nation's approach to digital currency oversight.
The newly formed task force aims to identify and penalize digital currency exchanges (DCEs) operating crypto ATMs that fail to comply with anti-money laundering (AML) regulations. AUSTRAC CEO Brendan Thomas warned providers that non-compliance could result in severe financial penalties.
"Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and reducing crime risks," Thomas stated. "Those ignoring these obligations risk substantial financial penalties, and AUSTRAC won't hesitate to take action."
The initiative comes at a critical time for Australia's rapidly evolving cryptocurrency landscape. Despite having approximately 1,200 crypto ATMs—ranking third globally—only a few of the 400 registered digital currency exchange providers actually operate these machines.
Regulatory pressure extends beyond AUSTRAC. The Australian Securities and Investments Commission (ASIC) has also introduced new licensing rules, requiring crypto exchanges managing significant client assets to obtain an Australian Financial Services License (AFSL).
The move follows a series of alarming cryptocurrency-related crimes. Earlier this year, Australian authorities uncovered a massive scam affecting over 2,000 digital wallets, utilizing an "approval phishing" technique that has globally stolen more than $4 billion since May 2021.
With an estimated 31.6% of Australians having held or currently holding cryptocurrencies, the task force represents a crucial step in protecting consumers and preventing financial crimes in the digital asset space.
AUSTRAC's CEO emphasized that this task force is just the first step in a broader strategy. "We will be focusing intensively on this industry over the next year," Thomas added, signaling a comprehensive approach to regulating the cryptocurrency ecosystem.
As the digital currency market continues to expand, Australia's proactive regulatory stance positions the country as a potential model for comprehensive cryptocurrency oversight.
