Cryptolink: Crypto ATMs forced to shut down over money laundering concerns

A company specialising in operating ATMs that exchange cryptocurrency for cash has had its network temporarily shut down over concerns it hasn’t complied with anti-money laundering and counter-terrorism funding laws.

Cryptolink operated 96 cryptocurrency ATMs across Australia, specifically designed to help people withdraw money earned from owning Bitcoin and other cryptocurrency.

However, AUSTRAC, Australia’s financial intelligence agency, has forced the company to stop operating its crypto ATMs (CATM) for three months, starting on Monday.

AUSTRAC chief executive Brendan Thomas said the suspension came after the company could not guarantee it was complying with laws to ensure its machines aren’t used for money laundering.

“AUSTRAC has ongoing concerns about the company’s ability to manage high-risk transactions through its CATMs,” Thomas said in a statement.

“While Cryptolink met the conditions stipulated in its enforceable undertaking, it subsequently failed to meet basic reporting obligations, particularly for threshold transaction reports.”

Thomas said Cryptolink did not respond to an AUSTRAC request for information that would have provided clarity on whether the company was not breaching Australian laws through its CATMs.