Key Takeaways
- Cryptolink cannot operate its 96 crypto ATMs for three months.
- AUSTRAC cited failures involving required transaction reports.
- The company already paid a fine and agreed to a compliance deal.
Why Did AUSTRAC Shut Down Cryptolink’s 96 Crypto ATMs?
Cryptolink’s 96 cryptocurrency automatic teller machines (CATMs), which allow customers to exchange cash for cryptocurrency, were ordered offline for three months, the Australian Transaction Reports and Analysis Centre (AUSTRAC) announced Aug. 10, after suspending the company’s virtual asset service provider registration. The regulator cited continuing anti-money laundering and counter-terrorism financing concerns in the Cryptolink suspension, extending regulatory pressure on cash-to-crypto businesses.
AUSTRAC CEO Brendan Thomas said:
“As part of our continued focus on digital currency as a money laundering risk, AUSTRAC has ongoing concerns about the company’s ability to manage high-risk transactions through its CATMs.”
Customers can use crypto ATMs to buy cryptocurrency with cash and send it directly to a digital wallet by scanning or entering the wallet address. Depending on the operator and transaction size, users may also need to verify their identity. Cash purchases through bitcoin ATMs can carry higher fees and lower transaction limits than purchases made through other services.
What Reporting Failures Triggered the Suspension?
Conditions imposed under an earlier enforceable undertaking were satisfied, AUSTRAC stated, though the company subsequently failed to meet basic reporting obligations, particularly requirements covering threshold transactions. The regulator also stated that the company failed to submit required reports or respond to an information request, leading AUSTRAC to classify its continued operation as too high risk at present.
The latest action follows AUSTRAC’s October 2025 enforcement against Cryptolink, when the regulator alleged late reporting of large cash transactions and weaknesses in the company’s AML/CTF risk assessments. Cryptolink was required to use third-party reviewers to assess transaction reporting and controls while addressing deficiencies identified through the regulator’s Crypto Taskforce.
Why Are Crypto ATMs Drawing Greater Regulatory Attention?
Australian authorities have identified crypto ATMs as vulnerable to criminal misuse due to their ability to convert physical cash into cryptocurrency rapidly. AUSTRAC’s warnings about cryptocurrency ATM scams state that the machines can be exploited in money laundering, scams and money mule activity, while cryptocurrency transfers generally cannot be reversed once funds reach an address outside the customer’s control.
Earlier enforcement against the same operator included an infringement notice of A$56,340, roughly US$39,000 at current exchange rates, which Cryptolink paid without admitting liability, AUSTRAC stated. The regulator established its Crypto Taskforce amid heightened supervision of cryptocurrency ATM operators and has conducted supervisory engagements with the sector since late 2024.
Thomas said:
“Cryptolink was given the opportunity to comply but could not meet its obligations despite the enforceable undertaking.”
At the Oct. 31, 2025 exchange rate, the Australian-dollar penalty was worth approximately US$36,900.
How Are Other Governments Responding to Crypto ATM Risks?
Regulatory scrutiny of cryptocurrency kiosks has also intensified in the United States as authorities focus on fraud losses, transaction controls and consumer protections. U.S. lawmakers introduced legislation targeting crypto ATM scams in June after reported American losses exceeded $333 million in 2025, proposing transaction limits, scam warnings, customer due diligence and expanded record-keeping requirements.
State authorities have pursued separate enforcement measures involving individual operators, including a Missouri lawsuit targeting more than 140 kiosks. The case against Coinflip alleges fraud-related deficiencies and insufficient fee disclosures, with crypto ATM fees reaching as high as 21.9% in transactions described by the state’s complaint. Coinflip disputed the allegations and said it would fight the lawsuit.
Tennessee adopted a broader approach by prohibiting cryptocurrency kiosks statewide after lawmakers cited scam losses and risks to older consumers. Under Tennessee’s crypto ATM ban, operators and property managers were required to remove or deactivate existing machines by July 1. Coinflip and a second operator sued to block the law, and a federal court denied their request, allowing the ban to take effect, Tennessee Attorney General Jonathan Skrmetti announced July 7.
Monitoring of Cryptolink will continue throughout the three-month suspension, which runs until early November, to ensure the company complies with the order, AUSTRAC stated.
