This is Why AUSTRAC Launched Crackdown on Crypto ATMs
Australia’s financial intelligence agency AUSTRAC has announced a new crackdown on cryptocurrency ATMs. Although the regulator has not yet issued a blanket ban, it will strictly scrutinize the legal compliance of ATM machines.
AUSTRAC described the crackdown as the “first step” in the agency’s wider initiative to combat cryptocurrency crime.
AUSTRAC to investigate whether cryptocurrency ATMs facilitate money laundering
The Australian Transaction Reports and Analysis Center (AUSTRAC) announced the crackdown through the media release On December 6, the regulatory agency said, Scammers use cryptocurrency ATMs Engage in criminal activities and transfer illegal funds. AUSTRAC views crypto ATMs as the best conduits for money laundering and facilitating crypto-related crime.
“Crypto ATMs are an attractive avenue for criminals looking to launder money because they are easy to use and can make near-instant and irreversible transfers. Cryptocurrency ATM providers need to ensure they are reducing crime Risks. If they ignore these obligations, AUSTRAC will not hesitate to take action,” AUSTRAC chief executive Brendan Thomas claimed.
Previously, UK regulators had also Crackdown on Cryptocurrency ATMs in 2022citing similar money laundering charges. Australian law enforcement has been investigating cryptocurrency ATMs for some time. 2022, NSW Police Check Size of Several Cryptocurrency ATMs as part of an interagency raid.
AUSTRAC claims that only a handful of cryptocurrency companies operate the majority of Australia’s ATMs. Therefore, the agency has the ability to vet potential violators. Regulators have also set up a special task force for this purpose.
The organization’s CEO called the crackdown “the first step in AUSTRAC’s commitment to reducing the criminal use of cryptocurrencies in Australia.” However, other government agencies have been conducting their own operations.
Meanwhile, another financial regulator, ASIC, More than 600 cryptocurrency scams uncovered in Augustand Police seize $6.4 million from crypto criminals October.
In other words, AUSTRAC is ready to take drastic measures. Thomas used anti-crypto rhetoric multiple times in his statement, such as “As cryptocurrency use increases, so will criminal exploitation.” Still, the crackdown is focused on law enforcement and there are no new restrictions.
To remain compliant, Australian cryptocurrency ATM operators must monitor transactions, conduct KYC checks on all customers, report all withdrawals over $10,000, and more. Cryptocurrency ATM scams It is common for Australian regulators to continually Encourage users to report suspicious activity in the cryptocurrency market.
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