Quick Breakdown
- AUSTRAC penalizes Cryptolink $56,340 for late reporting and AML/CTF compliance failures.
- The regulator cites crypto ATMs as major money laundering channels in Australia.
- Enforcement underscores AUSTRAC’s push to tighten crypto sector oversight and curb scam-linked transactions.
Australia’s financial intelligence agency, AUSTRAC, has issued a $56,340 infringement notice to crypto service provider Cryptolink for failing to report large cash transactions on time and for weaknesses in its anti-money laundering and counter-terrorism financing (AML/CTF) controls.
The regulator also accepted a court-enforceable undertaking, requiring Cryptolink to address compliance gaps identified by AUSTRAC’s Crypto Taskforce, a specialized unit formed to curb illicit crypto activity across the country.
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
AUSTRAC targets late eporting and Risk Gaps
AUSTRAC’s investigation found that Cryptolink had delayed reporting key threshold transactions and lacked adequate risk assessments to detect and prevent financial crime through its crypto ATM network.
“Crypto ATMs remain one of the highest-risk channels for laundering money and moving scam proceeds,”
said AUSTRAC CEO Brendan Thomas.
“This action ensures crucial financial intelligence doesn’t slip through the cracks.”
Under the enforceable undertaking, Cryptolink must hire independent auditors to verify that all large cash transactions have been properly reported and to assess whether its risk frameworks meet AUSTRAC’s compliance standards.
While Cryptolink has fully cooperated with authorities and paid the fine in full, AUSTRAC emphasized that payment does not constitute an admission of liability.
Crypto ATMs Under Scrutiny for Scam Activity
The crackdown follows AUSTRAC’s year-long monitoring of crypto ATM operators, revealing that 85% of transactions from the 90 most active users were linked to scams or money mule activity.
AUSTRAC’s findings align with recent data from the Australian Institute of Criminology, which shows that over 40% of cybercrime victims are re-victimized within months often through crypto-related schemes.
Thomas warned that while digital currency remains an innovation driver, AUSTRAC will not hesitate to act against operators failing to enforce strict AML/CTF protocols. “Criminals don’t care how they hurt people, they care about making money,” he said.
Further deepening its regulatory push, AUSTRAC voiced concerns over the growing risks associated with crypto ATMs. The agency criticized operators for failing to implement robust anti-money laundering (AML) and counter-terrorism financing (CTF) controls, warning that these lapses could further expose the financial system to criminal exploitation.
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