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The federal government has set up a cryptocurrency taskforce to identify and act against non-compliant crypto ATM providers.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) says cryptocurrency is increasingly being used for money laundering, scams and money mule activities.
It says its taskforce will ensure digital currency exchanges (DCEs) with crypto ATM services meet minimum standards and have robust practices to identify and minimise the risk of their machines being used by criminals.
By law, DCEs, including those with crypto ATM facilities, must register with AUSTRAC and have to monitor transactions, complete checks on customers, report suspicious activity and report cash deposits and withdrawals of $10,000 or more.
AUSTRAC CEO Brendan Thomas says that they will tighten their monitoring of crypto ATM providers and will take action against operators who flout the rules.
“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 says.
“We’re seeing too many Australians falling victim to scams carried out through cryptocurrency. We’ve heard of some victims losing their life savings, which is just heart breaking.
“Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime,” Thomas says.
“If they’re ignoring those obligations, they risk being subject to significant financial penalties and AUSTRAC won’t hesitate in taking action.”
AUSTRAC says there are about 400 DCE providers registered with them with 1200 crypto ATMs operating, the third highest globally.
Anyone who suspects fraud or scam activity when using a crypto ATM should report this directly to the police and to the National Anti-Scam Centre’s Scamwatch, the Australian Cyber Security Centre’s ReportCyber.
Scamwatch and ReportCyber provides information about how to recognise and avoid scams.
More details can be found on the AUSTRAC website.
