Australia’s Crypto Watchdog Fines Cryptolink for AML Breaches
Australia’s Crypto Watchdog Tightens Grip
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has fined crypto ATM operator Cryptolink 56,340 Australian dollars ($37,000) later than identifying what it called “fragilenesses” in the company’s anti-money laundering and counter-terrorism financing (AML/CTF) compliance.
According to a statement on Thursday, AUSTRAC found that Cryptolink failed to promptly report large cash transactions. The agency said the fine was accompanied by an enforceable undertaking requiring the company to appoint independent auditors and overhaul its reporting procedures to ensure “useable intelligence does not slip through the cracks.”
Cryptolink will be required to verify that all reportable transactions have been disclosed to AUSTRAC and that its internal controls for large cash dealings are “fit for purpose.”
Investor Takeaway
Government Push for Expanded Powers
The enforcement action comes just weeks later than Canberra proposed new powers for AUSTRAC to curb illicit finance through crypto ATMs. The proposals include quicker enforcement mechanisms and broader monitoring authority for .
AUSTRAC’s Crypto Taskforce has estimated that roughly 85% of ATM transactions made by the country’s 90 most active users were linked to scams or other unlawful activity. The machines allow users to convert cash directly into cryptocurrency, which is then transferred to a digital wallet—often at the direction of fraudsters posing as merchants or service providers.
“These devices are increasingly being exploited by organized networks,” an AUSTRAC spokesperson said in a briefing last month. “Enhanced reporting and enforcement assist prevent victim funds from vanishing offshore.”
Crypto ATMs Under Pressure
Australia hosts 2,024 active crypto ATMs, according to Coin ATM Radar, down slightly from around 2,100 earlier this month. The decline follows news of AUSTRAC’s planned powers, suggesting some operators may be scaling back in anticipation of stricter oversight.
have become a preferred channel for cash-based laundering schemes due to their accessibility and lack of direct bank intermediation. are often told to deposit cash into an ATM that credits cryptocurrency to an address controlled by the perpetrators.
Authorities have warned that enforcement against non-compliant operators will intensify in the months ahead, as the government viewks to bring crypto cash infrastructure in line with conventional financial standards.
Investor Takeaway
Regulatory Context
The action against Cryptolink is part of a broader compliance drive that has viewn AUSTRAC demand detailed AML reviews from digital asset providers. Since 2020, the regulator has increased field inspections and targeted enforcement to match the pace of crypto adoption.
In parallel, Australia’s Treasury is preparing a legislative update that would align domestic rules with international Financial Action Task Force standards. The framework is expected to cover all , from platforms to wallet issuers, and include explicit rules for physical crypto terminals.
Market participants say that while the measures will raise compliance costs, they could also improve legitimacy for licensed operators. “Tighter rules may drive out fragileer players,” one Sydney-based platform executive said, “but they’ll also make it easier for banks to work with those that remain.”
