AUSTRAC Fines CryptoLink AU$56,340 for Anti-Money Laundering Failures

Highlights:

• AUSTRAC has fined CryptoLink after finding weak reporting controls.
• CryptoLink agreed to engage third-party reviewers to strengthen its anti-money laundering systems.
• Regulators have said scams through crypto ATMs continue to grow as victims lose millions.

Australia’s financial intelligence agency, AUSTRAC, has fined CryptoLink AU$56,340 for breaching anti-money laundering and counter-terrorism financing rules. The regulator said CryptoLink failed to report several large cash transactions on time and displayed weaknesses in its compliance framework. AUSTRAC CEO Brendan Thomas said the action ensures “usable intelligence does not slip through the cracks.”

AUSTRAC have issued Cryptolink an infringement notice, after our Crypto Taskforce identified large cash transactions & weaknesses in their #AMLCTF risk assessments.

Cryptolink has fully cooperated with AUSTRAC. Read the full release here: https://t.co/zV5bTBuNKO pic.twitter.com/eteV4a05JC

— AUSTRAC (@AUSTRAC) October 30, 2025

The fine follows months of monitoring by AUSTRAC’s Crypto Taskforce, which focuses on identifying risks in the digital asset sector. The task force found gaps in how some operators reported suspicious or large transactions. Authorities said CryptoLink’s controls did not meet the standards expected under Australian financial laws. The company operates 97 crypto ATMs across Australia, often located in high-traffic retail outlets.

Thomas said crypto ATMs remain a major concern for law enforcement due to their use in moving scam proceeds. He described how criminals transfer money to offshore accounts by using these machines. AUSTRAC has stressed that taking actions to comply with reporting laws assists in ensuring that consumers and the broader financial landscape are not exploited.

AUSTRAC Fines CryptoLink as Scams Drive ATM Oversight

The enforcement comes amid a surge in scams involving crypto ATMs. AUSTRAC’s task force found that 85% of transactions made by the 90 most active ATM users were linked to scam or money-mule operations. The findings confirmed that scammers continue to exploit crypto ATMs to convert stolen funds into digital assets.

Australia now has more than 2,000 crypto ATMs, up from about 1,608 in August last year. Officials said the increase has created new risks for victims, especially older Australians. Scams involving these machines often include romance fraud, investment schemes, and extortion cases.

Thomas said crypto ATMs are “one of the highest-risk money-laundering channels” and that the agency will continue working with law enforcement partners to curb misuse. AUSTRAC’s review revealed that many victims unknowingly transfer money through these machines to criminals. The agency urged the public to avoid depositing funds into wallets they do not control.

Authorities estimated Australians lost over $3 million to crypto ATM scams in the year to January. However, the actual figure could be higher because many victims never report such losses. AUSTRAC has warned operators to tighten verification measures and monitor suspicious activity to avoid similar penalties.

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Australians are losing millions of dollars each year to scams linked to cryptocurrency ATMs, with $3 million lost in 12 months.
Financial crime and money-laundering regulator AUSTRAC has announced new controls on crypto ATM operators,… pic.twitter.com/BSFagZUO28

— BANBytes ATM’S (@FounderOFMegaC) October 17, 2025

CryptoLink to Tighten Controls and Cooperate with Reviewers

CryptoLink has paid the fine in full and agreed to work with AUSTRAC to strengthen its controls. The agency ordered the company to engage third-party reviewers to verify whether all threshold transactions were reported correctly. The reviewers will also check if CryptoLink has improved its risk assessments and adopted stronger measures for handling large cash deposits.

Thomas said AUSTRAC aims to work with exchanges and ATM providers to harden the sector against exploitation. He warned that failure to comply with the law would attract further enforcement. Authorities continue to monitor other high-risk operators as the second stage of the Crypto Taskforce begins.

The government of Australia has already established more rigorous ATM usage restrictions, such as a daily limit of $5,000 per customer. However, despite these actions, an increasing number of machines are emerging in large cities. The United Kingdom and New Zealand have outlawed crypto ATMs, whereas Australia favors stricter regulation over a ban.