Australian regulator moves to curtail criminal use of cryptocurrency

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(Reuters) – Australia’s agency for monitoring financial crimes said on Friday it had established an internal cryptocurrency task force to identify and take action against crypto ATM providers that do not comply with the country’s anti-money laundering laws.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) said its findings showed cryptocurrency was increasingly being exploited for money laundering, scams and money mule activities.

AUSTRAC’s taskforce will ensure digital currency exchanges that provide crypto ATM services have robust practices in place to minimise the risk of their machines being used to move money associated with scams or fraud, the government agency said.

A crypto ATM allows users to buy and sell cryptocurrencies, like bitcoin and dogecoin, for cash.

Currently, Australia has 1,200 operating crypto ATMs, while about 400 digital currency exchange providers are registered with AUSTRAC.

The total value of the cryptocurrency market has almost doubled over the year so far. Bitcoin also hit a record high above $100,000 as the election of Donald Trump as U.S. president fuelled expectations his administration will usher in a friendly regulatory environment for cryptocurrencies.

AUSTRAC CEO Brendan Thomas said the agency was seeing “too many” Australians falling victim to scams carried out through cryptocurrency.

“Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers,” he said, adding that crypto ATMS who were found flouting the anti-money laundering laws would be subject to financial penalties.

(Reporting by Himanshi Akhand in Bengaluru; Editing by Shreya Biswas and Krishna Chandra Eluri)