Australia's financial intelligence agency has stated that it will target cryptocurrency ATM providers to combat money laundering and fraud activities.
The task force targets cryptocurrency ATMs. The Australian Transaction Reports and Analysis Centre (AUSTRAC), Australia's financial intelligence agency, will crack down on cryptocurrency ATM providers that fail to comply with the country's anti-money laundering regulations.
The agency stated that its intelligence shows that cryptocurrency is "increasingly being used for money laundering, fraud, and mule activities."
To address this issue, AUSTRAC has established a task force to ensure that ATM service providers meet minimum standards. The task force will work to ensure that cryptocurrency ATM operators can identify and minimize the potential for their devices to be exploited by scammers and money launderers.
AUSTRAC CEO Brendan Thomas stated that the agency will enhance monitoring of ATM providers and warned of severe actions against non-compliant providers.
He said: Cryptocurrencies and cryptocurrency ATMs are attractive to criminals wishing to launder money because they are widely used and can perform nearly instant and irreversible transfers.
We find too many Australians becoming victims of scams conducted through cryptocurrencies, and we have heard of some victims losing their life savings, which is heartbreaking.
The head of AUSTRAC added that his agency will prioritize ATM providers, which is part of a broader goal in Australia to reduce the criminal use of cryptocurrencies.
According to the agency's statement, the 1,200 cryptocurrency ATMs operated in Australia rank third globally.
These are operated by part of the 400 digital asset exchange providers registered with AUSTRAC.
Meanwhile, the Australian agency stated that it has developed materials to help cryptocurrency exchanges identify financial crime risks. Additionally, the agency urges the public to report to the police and the national anti-fraud center's Scamwatch if they suspect any fraudulent or scam activities when using cryptocurrency ATMs.
