AUSTRAC to crack down on crypto ATM compliance
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The news: Financial crime watchdog AUSTRAC has set up an internal taskforce to crack down on cryptocurrency ATM providers who do not comply with Australia's anti-money laundering rules.
The numbers: There are approximately 400 digital currency exchange (DCE) providers registered with AUSTRAC, although only a small number of these operate crypto ATMs. Australia has 1200 operating crypto ATMs, which is the third highest number globally.
The context: AUSTRAC said its intelligence showed cryptocurrency is increasingly being exploited for money laundering, scams and money mule activities.
It has therefore set up an internal cryptocurrency taskforce to ensure digital currency exchanges that provide crypto ATM services meet minimum standards and have robust practices in place to identify and minimise the risk that their machines will be used to move money associated with scams, fraud or other proceeds of crime.
AUSTRAC chief executive Brendan Thomas warned the agency will tighten monitoring of crypto ATM providers, and take action against operators who are flouting the rules.
What they said: “Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers,” Thomas said.
“As the use of cryptocurrency increases, so too will criminal exploitation, which is why this taskforce will work to eliminate non-compliant high risk operations.”
The source: AUSTRAC
