- AUSTRAC boosts scrutiny on 1,200 crypto ATMs and 400 exchanges to prevent illegal activities.
- Stricter KYC and reporting rules enforced under Australia’s anti-money laundering laws.
- ASIC proposes updates clarifying digital assets like stablecoins as financial products.
Australia’s financial intelligence agency and securities regulator announced an increased review and amended guidelines for crypto-related operations. On December 6, the Australian Transaction Reports and Analysis Centre (AUSTRAC) released a statement confirming it will increase its focus on digital currency exchanges (DCEs) and providers of crypto assets automated teller machines (ATMs) throughout 2025.
The agency highlighted the appeal of crypto ATMs to criminal entities, citing their accessibility and the rapid, irreversible nature of digital currency transfers. Currently, AUSTRAC monitors approximately 1,200 crypto ATMs and inspects the legality of around 400 registered digital exchanges.
Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006, DCEs operating locally, including those hosting crypto ATMs, must fully register with AUSTRAC.
Additionally, entities must conduct transaction monitoring procedures, verify customer identities through know-your-customer (KYC) checks, submit suspicious matter reports, and file required transaction reports for transactions involving cash amounts of A$10,000 or higher.
AUSTRAC’s Task Force and Potential Penalties
According to AUSTRAC’s chief executive officer, Brendan Thomas, the agency will deploy a specialized task force to identify and act against operations that fail to adhere to their legal obligations. Non-compliant operators risk significant financial penalties and potentially other enforcement actions.
AUSTRAC stated its goal is to stop illegal activities such as money laundering and scams, ensuring crypto infrastructure is not exploited by those seeking to mask criminal profits or defraud the public.
ASIC’s Proposed Updates to Digital Asset Guidance
Similarly, the Australian Securities and Investments Commission published a consultation paper proposing updates to its existing guidance on digital assets under the Corporations Act.
The proposed revisions to Information Sheet 225 (INFO 225) include 13 new examples illustrating how certain digital assets may be classified as financial products.
This guidance covers stablecoins, wrapped tokens, staking services, and tokenized assets, clarifying their regulatory treatment based on inherent rights, features, and each token’s benefits.
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