Australia's financial crimes regulator AUSTRAC has fined cryptocurrency ATM operator Cryptolink $56,340 as part of efforts to combat scams and money laundering. The action highlights growing concerns over crypto ATMs, which have been linked to significant losses for victims, including elderly Australians. While new restrictions were imposed in July, advocates continue to call for an outright ban.
On Thursday, AUSTRAC announced enforcement action against Queensland-based Cryptolink, fining the operator $56,340 and requiring an enforceable undertaking following an investigation by its crypto taskforce. The penalties stem from failures to report large cash transactions over $10,000 and inadequate assessments of money laundering and terrorism financing risks. Cryptolink, which operates 97 machines across Australia, agreed to appoint a third party to review its systems, including controls for high-value transactions. A spokesperson for the company stated, "While we regret the shortcomings that led to this outcome, we are focused on strengthening our systems and controls to build a more robust, resilient and trusted platform." They added that the resolution reflects a "fair approach by the regulator" and appreciation for constructive engagement.
This marks the second such action, after AUSTRAC deregistered South Australian operator Harro's Empire in June and ordered it to shut down four machines due to criminal exploitation risks. Crypto ATMs have proliferated, with over 2,000 now installed nationwide, up from 23 in 2019, often in high-traffic spots like supermarkets and petrol stations. AUSTRAC imposed new conditions in July, including a $5,000 daily per-customer limit, yet about 200 more machines have appeared since.
The taskforce found that 85 percent of transactions by the 90 most frequent users were linked to scams or money-mule activity. AUSTRAC general counsel Tim Lear explained, "A crypto ATM is a non-face-to-face channel that's available 24 hours a day, seven days a week. Once cash is fed into the machine, it goes straight into a wallet and the money is transferred instantly." Australians lost an estimated $3 million to such scams in the 12 months to January, per the Australian Cyber Security Centre, with under-reporting likely inflating the true figure. Common schemes include investment rip-offs, romance fraud, extortion, and money mules, predominantly affecting those over 50.
For 72-year-old Perth pensioner Dorothy Dyall, the crackdown arrived too late. In April, she lost her $12,500 life savings after falling for a scam involving a fake Microsoft alert claiming her computer accessed child pornography sites. Scammers, posing as security experts, convinced her over four hours to withdraw cash—claiming it was for a second-hand car purchase—and deposit it into a Localcoin crypto ATM in her local supermarket. "They were very, very convincing," Ms Dyall said. She received a $1,000 goodwill payment from her bank with help from financial counsellor Colleen Crowley but could not recover the rest. Ms Dyall urged, "Don't feel ashamed if you've been scammed."
Consumer advocates and banks, including the Australian Banking Association, demand a ban, as in the UK since 2022 and New Zealand. ABA chief executive Simon Birmingham said, "Banning or more tightly regulating crypto ATMs will help close off a channel that criminals exploit." Home Affairs Minister Tony Burke has flagged stronger AUSTRAC powers but ruled out a ban. IDCare CEO David Lacey noted early concerns dating back over seven years, including patterns in areas like Far North Queensland.