AUSTRAC Cracks Down On Crypto ATMs; Fines Cryptolink AUS$56,340

Australia’s financial intelligence agency, AUSTRAC, has fined crypto ATM operator Cryptolink AUS$56,360 (approx. US$37,000) as part of a country-wide crackdown on money laundering and scam-related activity through cryptocurrency ATMs. This action is after the agency’s Crypto Taskforce identified massive deficiencies in Cryptolink’s anti-money laundering (AML) and counter-terrorism financing (CTF) compliance systems. 

According to AUSTRAC, Cryptolink didn’t report large cash transactions within the required timeframes. They also had insufficient measures in place to mitigate the risk of the ATMs being used for illicit purposes. AUSTRAC’s CEO, Brendan Thomas, described crypto ATMs as “one of the highest-risk channels for money laundering in Australia,” citing evidence that these machines were being exploited by criminals and scam networks. 

In many cases, consumers use conventional financial methods, like Interac, to purchase cryptocurrency online before transferring it to digital wallets. Resources like this Interac payment casino guide show how secure payment networks like Interac can facilitate crypto purchases, which can then be used online, like on gambling and gaming platforms. These same mechanisms show how legit transactions can coexist with risk, something AUSTRAC is determined to address with crypto ATMs. 

The financial regulator has accepted a court-enforceable undertaking from Cryptolink requiring the company to implement several remedial actions. These include the appointment of an independent third-party auditor to review reporting accuracy, assessing AML/CTF controls, and verifying that all transactions meet AUSTRAC’s legal requirements. 

Cryptolink is required to submit a full report to AUSTRAC by March 2026 showing its progress. 

The fine is in line with stricter oversight in Australia’s crypto sector. More than 2,000 crypto ATMs are currently operating in the country, but regulatory scrutiny has increased since late 2024. Government proposals have granted AUSTRAC expanded powers to act against non-compliant providers.

The agency’s investigations revealed that around 85% of transactions from the 90 most frequent ATM users were connected to scams or money mule operations. This alarming percentage shows that these machines can easily be misused for fraud or illicit crypto transfers. 

Cryptolink promptly paid the fine, but AUSTRAC stated that doing so does not result in an admission of liability. The operator must now change its compliance framework to prevent future issues. “Criminals don’t care if they hurt people; they care about making money,” said Thomas. “We want to collaborate with digital currency exchanges and fortify the sector against exploitation. However, if operators fail to heed these warnings, we will be compelled to take further action.”

The number of active crypto ATMs is declining because of this heightened scrutiny. AUSTRAC is clearly working towards a safer and more transparent digital finance industry, where operators must reassess their compliance measures and balance them against operational viability. 

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