Australia suspends country’s biggest crypto ATM operator over AML failures
According to Austrac, Cryptolink did not address its compliance shortcomings despite being given the opportunity.
Cryptolink, Australia’s biggest crypto ATM operator, has been forced to suspend its 96-machine network for three months after the Australian Transaction Reports and Analysis Centre (Austrac) determined that the business was too high-risk to continue operating.
The regulator said Cryptolink failed to meet required reporting obligations and did not provide information requested to verify compliance with Australia’s anti-money laundering and counter-terrorism financing rules. Austrac also raised concerns about the company’s ability to manage high-risk transactions.
The suspension came less than a year after Cryptolink was fined A$56,340 and entered into an enforceable undertaking with Austrac. That action followed alleged AML violations, including late reporting of transactions involving at least A$10,000 and weaknesses in the company’s risk assessments.
Cryptolink previously committed to independent compliance reviews, stronger transaction monitoring and tighter risk controls. However, the regulator said the company failed to demonstrate that it had adequately addressed its compliance shortcomings.