Australia Cracks Down On Crypto ATMs

Australia's financial crime watchdog has suspended crypto ATM operator Cryptolink, forcing the firm to shut down 96 machines across the country.

The Australian Transaction Reports and Analysis Centre, known as AUSTRAC, said the three-month suspension took effect on Aug. 9 of this year. 

The move prevents Cryptolink from providing virtual asset services while the suspension remains in effect.

Crypto ATMs allow customers to use cash to buy cryptocurrencies such as Bitcoin (CRYPTO: $BTC), serving as a bridge between fiat currency and digital assets. 

Some countries, such as Canada, have banned crypto ATMs outright, saying they pose an unacceptable risk and can be manipulated for financial scams and money laundering. 

AUSTRAC said it is concerned about Cryptolink transactions being used for money laundering and terrorism financing.

The regulator said Cryptolink has failed to submit required transaction reports and did not respond to an AUSTRAC request for information.

AUSTRAC's Cryptocurrency Taskforce has investigated Cryptolink and other crypto ATM operators for alleged breaches of anti-money laundering and counter-terrorism financing rules. 

AUSTRAC has also fined Cryptolink the equivalent of $36,600 U.S., which the company has paid.