tl;dr
Australia’s financial crimes watchdog, AUSTRAC, has issued a warning regarding crypto ATM operators potentially facilitating money laundering and fraud. The watchdog's crypto taskforce uncovered concerning trends and suspicious activity related to crypto ATMs, prompting a call for robust practices t...
AUSTRAC, Australia's financial crimes watchdog, has issued a warning regarding suspicious activity linked to crypto ATMs, highlighting the need for robust practices to prevent money laundering and fraud. This warning aligns with efforts from U.S. lawmakers to address rising fraud cases involving crypto kiosks, with proposed legislation seeking to impose transaction limits and enhance consumer protection measures.
Australia's Anti-Money Laundering laws require all digital currency exchanges, including crypto ATM operators, to register with AUSTRAC and adhere to regulations such as performing KYC checks, monitoring transactions, and filing Suspicious Matter Reports as well as reports for cash transactions over $10,000.
The number of crypto ATMs in Australia has significantly increased, with over 1,648 machines across the country, prompting increased regulatory scrutiny amidst rising fraud cases. Sydney alone accounts for 348 machines, according to Coin ATM Radar.
AUSTRAC's warning comes as U.S. lawmakers are introducing measures to tighten regulations around crypto kiosks in response to surging fraud, particularly targeting elderly victims. Proposed legislation includes capping daily transaction limits at crypto ATMs and mandating refunds for scam victims who report fraud within specific timeframes.