AUSTRAC Fines Cryptolink Amid National Crackdown on Crypto ATMs

News

Australian Authorities Seize $4.5M in Assets Linked to Suspected Crypto Crimes

  • AUSTRAC fined Cryptolink AUD 56,340 for delayed reporting of large cash transactions under AML/CTF laws.
  • Cryptolink must undergo independent audits to ensure its transaction monitoring and reporting meet legal standards.
  • The fine reflects Australia’s broader push to curb illicit activity in crypto ATMs, with usage linked to scams

Australia’s financial intelligence agency, AUSTRAC, has fined crypto ATM operator Cryptolink 56,340 Australian dollars ($37,000) after discovering compliance issues related to anti-money laundering and counter-terrorism financing obligations. The enforcement marks a new phase in Australia’s tighter oversight of the digital asset sector.

Regulatory Action Against Cryptolink

AUSTRAC said it identified delays in reporting large cash transactions made through Cryptolink’s network. The agency issued an enforceable undertaking to ensure that all transaction data contributes to national financial intelligence efforts. Cryptolink must now engage independent auditors to review its systems and verify that all significant transactions have been properly reported.

Under the undertaking, auditors will also evaluate whether Cryptolink’s controls for managing large cash dealings are adequate and aligned with Australia’s AML and CTF framework. The review aims to strengthen reporting accuracy and maintain compliance across the company’s operations.

Wider Crackdown on Crypto ATMs

This penalty follows government proposals to expand AUSTRAC’s powers over cryptocurrency services, including crypto ATMs. Officials have cited growing concerns about the use of these terminals in illegal activity. The new measures would allow AUSTRAC to impose stronger controls and act more swiftly against non-compliant operators.

AUSTRAC’s Crypto Taskforce recently estimated that 85 percent of transactions by the 90 most active crypto ATM users were linked to scams or illicit conduct. The agency said these terminals are often exploited by fraudsters who instruct victims to deposit cash into specific wallets. Once funds are transferred, victims typically lose contact with the perpetrators.

Shrinking Number of Terminals

As per Coin ATM Radar’s information, at the present time, Australia has 2,024 automated teller machines (ATMs) for cryptocurrencies. This is a minor reduction from roughly 2,100 that were there earlier in the month. The decrease occurred along with an increase in regulatory scrutiny, indicating that the government’s initiatives might be having an impact on operator conduct and transaction volumes already.

The action taken against Cryptolink signifies AUSTRAC’s ongoing commitment to the integrity of the Australian financial ecosystem. Regulators want to make sure that the cryptocurrency service providers are as transparent as the traditional banks and other financial institutions. They will not let go of their tight supervision until the digital finance space is cleansed of money laundering and fraud practices.
The crypto industry has been put under the microscope, and AUSTRAC has so far taken the lead in the new wave of regulation that is coming. Digital asset businesses are already adapting to the situation by putting in place the necessary compliance measures, which unfortunately means they have to bear the burden of costs related to setting up and operating the organizational structure, systems, and practices required to support compliance and reporting requirements.

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