Enforcement has been initiated by the Australian financial misconduct agency against the digital currency ATM provider, Cryptolink, stemming from its documented inability to promptly file mandatory reports for significant cash transactions.
Crypto ATMs Deemed “Highest-Risk” for Money Laundering
An infringement notice amounting to $56,340 has been levied against the digital currency ATM provider Cryptolink by the Australian Transaction Reports and Analysis Centre (AUSTRAC). The regulatory body simultaneously accepted a court-enforceable commitment from the operator, which was agreed upon to correct the company’s shortcomings in procedures for anti-money laundering (AML) and countering the financing of terrorism (CFT).
The regulatory action is derived, as stated in a formal press announcement, from discoveries made by AUSTRAC’s Crypto Taskforce. These findings highlighted problems connected to Cryptolink’s delayed submission of disclosures for major cash dealings and insufficient evaluations of vulnerability to illicit financing and terrorist funding.
AUSTRAC Chief Executive Brendan Thomas remarked that the penalty notice is directed at rectifying previous failure to adhere to disclosure mandates, while the legally binding agreement is purposed to guarantee that Cryptolink improves its danger evaluations and reinforces its complete anti-money laundering and counter-terrorism financing mechanisms.
“Digital currency machines are regarded as among the riskiest avenues for illicit fund movement in Australia,” Thomas stated, stressing that these terminals are routinely utilized by criminals to conceal funds and move profits derived from various fraudulent schemes. The severity of these discoveries was confirmed by him, a judgment supported by the findings of the Crypto Taskforce and cooperative efforts with police agencies.
As a mandatory component of the legally binding agreement, Cryptolink must retain independent auditors to verify that every necessary threshold financial dealing is reported to AUSTRAC. These auditors are anticipated to thoroughly evaluate how effective the internal safeguards concerning significant cash transactions actually are.
A comprehensive, written account detailing the steps taken to resolve the findings is anticipated to be submitted to AUSTRAC by Cryptolink, including all corrective or improved measures identified by March 13, 2026. Simultaneously, the acceptance of this legally binding agreement by the AUSTRAC CEO does not affect the regulatory body’s prerogative to pursue subsequent action concerning any future infractions committed by Cryptolink.
While the notice was acknowledged and the penalty was quickly remitted by Cryptolink, this action, as per AUSTRAC, does not constitute an acceptance of legal responsibility on the part of the ATM service provider.
AUSTRAC Reports Scams as Leading Activity on Crypto ATMs
The punitive measure by the Australian supervisory body is subsequent to a focused period of interaction with digital currency ATM service providers since late 2024. Discoveries from AUSTRAC’s Crypto Taskforce disclosed that $85 of financial dealings were linked to fraudulent schemes and illicit fund transfer activities, as conducted by the ninety most frequent users of crypto ATMs.
“A considerable volume of questionable transactions is fueled by fraudulent schemes. Digital currency terminals are being exploited with increasing frequency by lawbreakers to manipulate and withdraw illegally obtained money,” Thomas further commented. He referenced a recent study published by the Australian Institute of Criminology, which demonstrated that over 40% of victims of cybercrimes are subjected to repeat offenses, frequently within a span of just a few months.
The subsequent stage of the Crypto Taskforce is directing its attention toward activities deemed highly vulnerable. The head of AUSTRAC emphatically highlighted the necessity for all participants within the digital currency industry to address these critical matters with utmost seriousness.
“Criminals don’t care how they hurt people; they care about making money,” Thomas said. “We want to collaborate with digital currency exchanges to fortify the sector against exploitation. However, if operators fail to heed these warnings, we will be compelled to take further action.”
