The cryptocurrency taskforce established by the Australian Transaction Reports and Analysis Centre (AUSTRAC) has found that some crypto ATM providers may not have the right anti-money laundering and counter-terrorism (AML/CTF) checks in place.

In December, CEO Brendan Thomas set up an internal taskforce of experts from AUSTRAC’s regulatory, enforcement and intelligence areas. The taskforce’s focus is on addressing money laundering and terrorism financing risks linked to crypto ATMs, also called ‘crypto kiosks’.

“The taskforce has been busy engaging with businesses to understand the risks in their sector and assess their compliance with the law,” Mr Thomas said.

“It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”

Australia has the highest number of crypto ATMs in the Asia Pacific region. Their numbers have grown rapidly – there were 23 in 2019 and 60 in 2022. Today, approximately 1,600 crypto ATMS are in use around the country, with new ones regularly installed by digital currency exchanges. The vast majority of transactions involve cash deposits to buy Bitcoin.

“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” said Mr Thomas.

“We will continue to work with industry to raise standards, but we will also take action against operators who don’t comply.”