AUSTRAC Halts 96 Cryptolink Crypto ATMs Over Compliance Risks

Key Takeaways

• Cryptolink cannot operate its 96 crypto ATMs for three months.
• AUSTRAC cited failures involving required transaction reports.
• The company already paid a fine and agreed to a compliance deal.

Why Did AUSTRAC Shut Down Cryptolink’s 96 Crypto ATMs?

Cryptolink’s 96 cryptocurrency automatic teller machines (CATMs), which allow customers to exchange cash for cryptocurrency, were ordered offline for three months, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced Aug. 10, after suspending the company’s virtual asset service provider registration. The regulator cited continuing anti-money laundering and counter-terrorism financing concerns in the Cryptolink suspension, extending regulatory pressure on cash-to-crypto businesses.

AUSTRAC CEO Brendan Thomas said:

“As part of our continued focus on digital currency as a money laundering risk, AUSTRAC has ongoing concerns about the company’s ability to manage high-risk transactions through its CATMs.”

Customers can use crypto ATMs to buy cryptocurrency with cash and send it directly to a digital wallet by scanning or entering the wallet address. Depending on the operator and transaction size, users may also need to verify their identity. Cash purchases through bitcoin ATMs can carry higher fees and lower transaction limits than purchases made through other services.