Global: Australia Targets Crypto ATM Providers Amid Money Laundering Concerns

Australia, home to the third-largest number of crypto ATMs globally, is intensifying regulatory scrutiny over concerns that these machines may be enabling financial crime. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has identified cryptocurrency as a top priority for 2025 and is forming a task force to clamp down on crypto ATM providers suspected of violating Anti-Money Laundering (AML) laws.

AUSTRAC’s Focus on Crypto Compliance

In a statement issued on December 6, AUSTRAC CEO Brendan Thomas emphasized the agency’s renewed commitment to addressing risks associated with cryptocurrency.
“Crypto ATMs are particularly appealing to criminals for laundering money due to their accessibility and ability to facilitate near-instant, irreversible transactions,” Thomas explained.

The newly formed task force will aim to enforce strict compliance among crypto ATM operators. Key areas of focus include ensuring adherence to minimum regulatory standards, effective transaction monitoring, and proper implementation of Know Your Customer (KYC) protocols to mitigate illicit activities.

Regulatory Expectations and Enforcement

Crypto ATM operators in Australia are already required to:

1. Register with AUSTRAC.
2. Monitor transactions for suspicious activity.
3. Implement KYC checks on users.
4. Report cash transactions exceeding 10,000 AUD (~$6,500).

Thomas warned that non-compliant operators face severe penalties, which may include:

• Fines exceeding $100,000 for money laundering violations.
• Prison sentences of up to 12 years for laundering smaller amounts, rising to 25 years for amounts above $644,400(~1 million AUD).

“This task force will focus on eliminating high-risk, non-compliant operations to curb criminal exploitation as cryptocurrency adoption continues to grow,” Thomas added.

Crypto ATM Growth in Australia

Australia’s crypto ATM market has surged in recent years, positioning the country as the third-largest global hub for Bitcoin and crypto ATMs, trailing only the United States and Canada.

• By April 2023, Australia surpassed Asia in Bitcoin ATM numbers, hosting over 1,302 machines, a sharp rise from just 67 in mid-2022.
• Leading providers like Coinflip (680 ATMs), Localcoin (465), and Cryptolink (75) dominate the market.

The United States leads globally with over 31,647 crypto ATMs, representing 81% of the market, followed by Canadawith a 7.8% share and 3,022 machines.

Strengthening Oversight as Crypto Grows

While private firms have driven exponential growth in crypto ATM adoption since late 2022, this expansion has also raised alarms over potential misuse by bad actors. AUSTRAC’s proactive measures seek to ensure the rapid growth of the sector does not compromise financial integrity, positioning Australia as a leader in both crypto innovation and regulation.