Crypto ATMs forced to shut down over money laundering concerns

A company specialising in operating ATMs that exchange cryptocurrency for cash has had its network temporarily shut down over concerns it hasn’t complied with anti-money laundering and counter-terrorism funding laws.

Cryptolink operated 96 cryptocurrency ATMs across Australia, specifically designed to help people withdraw money earned from owning Bitcoin and other cryptocurrency.

However, AUSTRAC, Australia’s financial intelligence agency, has forced the company to stop operating its crypto ATMs (CATM) for three months, starting on Monday.

AUSTRAC chief executive Brendan Thomas said the suspension came after the company could not guarantee it was complying with laws to ensure its machines aren’t used for money laundering.

“AUSTRAC has ongoing concerns about the company’s ability to manage high-risk transactions through its CATMs,” Thomas said in a statement.

“While Cryptolink met the conditions stipulated in its enforceable undertaking, it subsequently failed to meet basic reporting obligations, particularly for threshold transaction reports.”

Read more

Cost of living crisis ‘overblown’, experts say in shock finding

Thomas said Cryptolink did not respond to an AUSTRAC request for information that would have provided clarity on whether the company was not breaching Australian laws through its CATMs.

This meant, according to Thomas, the regulator had no choice but to take action.

“The company failed to submit these required reports or respond to AUSTRAC’s request for information, thus we’ve deemed it too high risk to continue operating at present,” he said.

“Cryptolink was given the opportunity to comply but could not meet its obligations despite the enforceable undertaking.”

As a result, Cryptolink has temporarily lost its Virtual Asset Service Provider (VASP) registration, which allows it to operate ATMs.

The company has also been issued with a $56,340 fine in October 2025 – which it paid – at the same time AUSTRAC accepted an enforceable undertaking.

As part of that agreement, Cryptolink commissioned independent reviews, enhanced its transaction monitoring systems, and improved risk assessments, according to a statement from the company released at the time.

This measure came after the cryptocurrency taskforce identified alleged breaches of anti-money laundering laws, including late reporting of threshold transactions, a movement of $10,000 or more in one transaction.

It also found alleged weaknesses in Cryptolink’s anti-money laundering and counter-terrorism finance risk assessments.

Cryptolink accepted there had been “lapses” which led to delayed threshold transaction reports, but insisted it does not condone or support the use of its CATMs for illicit purposes.

Read more

Labor remains defiant despite slumping to 13-year polling low

It said it had several measures to protect customers from potential scams, including warnings before transactions, education, and targeted transaction monitoring, meant to crack down on suspicious behaviour or transactions.

“Our customers are central to everything we do,” a Cryptolink spokesperson said in a statement in October last year.

“While we regret the shortcomings that led to this outcome, we are committed to turning this into an opportunity to build a more robust, resilient and trusted platform.”

AUSTRAC said it would continue to closely monitor the trade and use of cryptocurrency in Australia.

“We will continue to keep a close watch on the cryptocurrency sector, particularly businesses operating crypto ATMs, and will take action where we identify serious risks or non-compliance,” Thomas said.

Cryptolink has been contacted for comment.