AUSTRAC Fines Cryptolink $56K for AML Breaches in Crypto ATM Crackdown

Australia’s financial crime regulator has penalised Queensland-based crypto ATM operator Cryptolink for serious anti-money-laundering and counter-terrorism-financing (AML/CTF) failures, signalling tougher oversight across the digital currency industry, including areas such as online crypto casinos and online exchanges where similar compliance expectations apply.

AUSTRAC announced the $56,340 fine on 30 October 2025, along with a court-enforceable undertaking that compels Cryptolink to overhaul its compliance systems. The enforcement action follows an investigation by the regulator’s Crypto Taskforce, which found that the company had delayed reporting large cash transactions and failed to adequately assess its exposure to money-laundering and terrorism-financing risks.

Independent Review Ordered to Strengthen Oversight

Under the enforceable undertaking, Cryptolink must appoint independent reviewers to verify that all required threshold transactions, those exceeding $10,000, have been correctly reported. The reviewers will also evaluate the effectiveness of Cryptolink’s internal controls for large-cash transactions and test whether its risk-assessment framework is fit for purpose.

The company has paid the fine in full and cooperated with AUSTRAC’s investigation. The regulator clarified that payment of an infringement notice does not constitute an admission of guilt but serves as a mechanism to ensure prompt corrective action.

Crypto ATMs Labeled “High Risk” for Laundering

AUSTRAC’s taskforce findings revealed that 85 percent of transactions conducted by the 90 most active crypto ATM users in Australia were linked to scams or money-mule activity. The regulator considers these machines among the highest-risk channels for laundering illicit funds, as they enable anonymous, instant transfers with minimal oversight.

Australia currently has more than 2,000 crypto ATMs, down slightly from earlier this year amid rising scrutiny. These machines are often installed in retail locations such as petrol stations and supermarkets, providing easy cash-to-crypto conversion but posing challenges for law enforcement.

Recent scams have highlighted the human toll of such exploitation, with many victims, often older Australians, coerced into depositing life savings into crypto ATMs under false pretences. Authorities estimate that Australians lost over $3 million to crypto ATM-related scams in the past year, with the actual figure likely much higher due to under-reporting.

AUSTRAC Tightens Rules on the Sector

In July, AUSTRAC imposed new restrictions on all crypto ATM operators, including a daily transaction limit of $5,000 per customer and mandatory enhanced due diligence for large deposits. The latest enforcement against Cryptolink marks the second major action since those changes took effect, following the deregistration of South Australian operator Harro’s Empire earlier in the year.

AUSTRAC’s Chief Executive, Brendan Thomas, said the regulator’s current focus is on high-risk operators and that it intends to work with compliant businesses to strengthen the integrity of the digital currency sector. He emphasised that strong reporting and proactive risk management are essential to protect both consumers and Australia’s financial system from criminal misuse.

Setting a Compliance Benchmark

The case against Cryptolink is widely viewed as a test of AUSTRAC’s evolving enforcement strategy for the crypto industry. By mandating external audits and measurable improvements, the regulator aims to set a benchmark for compliance expectations within the growing crypto ATM network.

Authorities have hinted at further actions against other operators and have urged Australians to avoid transferring money to wallets they do not control or depositing cash into crypto ATMs at the request of strangers.

While the federal government has so far resisted calls to ban crypto ATMs entirely, as seen in the UK and New Zealand, it continues to explore legislation granting AUSTRAC broader powers to monitor and restrict high-risk operators.

For Cryptolink, the fine and oversight agreement marks a turning point. The company has pledged to strengthen its systems and demonstrate that crypto ATMs can operate responsibly under Australia’s tightening financial crime regime.