A Report by CYS Global Remit Legal & Compliance Office
On Friday, Australia's financial crime monitoring agency announced the establishment of a dedicated cryptocurrency task force aimed at addressing non-compliance with the nation’s anti-money laundering (AML) laws among crypto ATM providers.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has identified a worrying trend in the illicit use of cryptocurrency, which includes activities related to money laundering, fraudulent schemes, and money mule operations. The newly formed task force will focus on ensuring that digital currency exchanges offering crypto ATM services implement stringent safeguards to prevent their machines from processing fraudulent or scam-related transactions.
Crypto ATMs enable users to buy and sell cryptocurrencies, including Bitcoin and Dogecoin, using cash. Currently, the Australian market features approximately 1,200 operational crypto ATMs, while around 400 digital currency exchange providers are registered with AUSTRAC.
The cryptocurrency market has experienced substantial growth this year, nearly doubling in total value. Bitcoin recently surpassed £100,000, partly driven by expectations that Donald Trump's potential election as U.S. president could bring about cryptocurrency-friendly regulations.
AUSTRAC CEO Brendan Thomas expressed concern over the rising number of Australians falling victim to crypto-related scams. He noted, "Cryptocurrency and crypto ATMs are particularly appealing to criminals for money laundering purposes due to their accessibility and the nearly instantaneous, irreversible nature of transfers."
Thomas underscored that crypto ATM providers found in violation of AML regulations would face financial penalties, reflecting AUSTRAC's firm commitment to preventing the criminal exploitation of cryptocurrency.
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