AUSTRAC, the Australian financial crime regulator, is to establish a cryptocurrency task force, according to recent reports. The initiative also seeks to target crypto ATM providers that keep ignoring the country’s strict AML policies. This has exposed the increasing worry around the application of cryptocurrency in unlawful monetary transactions.
Australia Strengthens Crypto Regulation to Tackle Financial Crime
According to AUSTRAC’s report, the usage of cryptocurrency in criminal activities such as money laundering, scams, and money mule operations is on the rise. With the popularity of those digital currencies increasing, the agency is ramping up the fight against the use of the term crypto for unlawful financial actions. The task force will actually be operating to oversee compliance by the crypto businesses to the necessary regulations.
From humble beginnings, cryptocurrency has posed the opportunity of his opportunity for regulators all over the globe, including Australia. While digital asset systems have the potential for innovation because of their decentralization, criminals use them to avoid the traditional financial systems. AUSTRAC action demonstrates the trend in the number of increases in restrictions on crypto due to the fight against financial crimes.
The task force will point to those who operate crypto ATMs but have not met the country’s regulation standards. Such machines that enable users to withdraw or deposit fiat currency for crypto are popular but considered a weak link in money laundering and fraudulent schemes. Through this sector, AUSTRAC hopes to rein in money laundering activities facilitated through the use of cryptocurrencies.
The move is in line with Australia’s steady war on financial crime files. But to prevent misuse of digital currencies in criminal activities in the future, authorities such as AUSTRAC are developing their strategies as the market of cryptocurrencies is changing. The result of this new task force will, in all probability, adduce reference by other countries, encountering the effects of cryptocurrencies in the counter-aspect to financial fraudulence.
AUSTRAC Targets Crypto ATMs to Prevent Fraud and Scams
The Australian financial watchdog AUSTRAC has baked a dedicated team to set up safeguards to protect consumers from scams and fraud through crypto ATM services offered by digital currency exchanges. The task force will focus on the flow of crypto ATMs and will maintain tight supervision that will help to prevent the circulation of money laundering and protect consumers.
Cryptocassettes are being adopted in Australia as many individuals can physically access the merchants where they are stationed or buy cryptocurrencies, including Bitcoin and Dogecoins, using currency. However, their convenience comes with a seeming problem for sovereignty, hence a problem for the regulators; the machines can be used for “money laundering." AUSTRAC’s initiative is an attempt to stop such machines from being utilized by the criminals.
There are about 1200 crypto ATMs in Australia, while 400 digital currency exchange providers are currently listed with AUSTRAC. The more of such machines that emerge, the stronger the requirement for improvement of the regulations that control the process. The use of ATM hub-and-spoke models is on the rise, and AUSTRAC’s task force will guarantee the operators of such ATMs conform to the highest standards and reduce the risks of fraud and scams.
According to the decision made, the work of the task force will consist of strengthening compliance measures for the given type of bitcoin ATM and regulating its activity in order to check the user’s identity and trace the transactions carried out. These measures seek to stop illicit users from taking advantage of the crypto ATMs to perpetrate their money laundering or fraud. The initiative goes further to show that consumer protection, as well as the integrity of Australia’s financial system, is a top priority at AUSTRAC.
Given that the use of cryptocurrencies is gradually increasing, the activities of AUSTRAC can be considered as preventive measures to reduce associated risks of transactions with cryptocurrencies. The success of this task force will probably serve as a reference point for other countries that are struggling to address the question of crypto ATM regulation and the prevention of their usage in criminal activities.
Crypto Market Surge Spurs AUSTRAC’s Efforts Against Scams
The market situation of cryptocurrencies this year can be characterized as explosive: the total value has increased by nearly double. Bitcoin especially hit a high of over $100,000 during the election campaign of Donald Trump as the U.S. president. Business people and other experts in the field hope that his government will be more receptive to crypto assets so that the market will continue its upward trend.
Hence, there are challenges associated with this growth. AUSTRAC CEO Brendan Thomas went on to note that the number of Australians losing their hard-earned money to scams related to cryptocurrencies is on the rise. With the growth of the market and the increase of the number of various assets, the number of fraudsters actively using digital currencies to deceive people also increases.
AUSTRAC has said that cannabis sellers and the currency have grown popular among other criminals in the country because of cryptocurrencies and crypto ATMs. These machines are easily available and regularly used, and the transactions made through such machines are almost real-time and irreversible, and therefore these make such machines perfect for such activities. AUSTRAC is also trying to make operators abide by the anti-money laundering laws to help reduce such risks.
In this regard, AUSTRAC has stated that any crypto ATM providers who act in contravention of the anti-money laundering law in Australia will have to face hefty fines. The agency is already beginning to put into action the means to force compliance, to guarantee that crypto ATMs do not turn into a get-out-of-jail-free card. This crackdown is part of what AUSTRAC has been doing in a bid to protect Australian consumers.
Thus, as the given market develops, the functions of AUSTRAC that deal with its regulation only grow more vital. This has led to the agency engaging in several activities that try to differentiate between the virtue of digital currencies and the vices within the same. As the market advances, AUSTRAC will play a role in ensuring that the region is safe and secure to transact in cryptocurrencies.
