AUSTRAC has suspended Cryptolink's operations, halting 96 Bitcoin ATMs due to compliance failures regarding reporting obligations.
Summary
- AUSTRAC has suspended Cryptolink's registration for three months starting August 9, affecting its 96 crypto ATMs.
- The suspension follows Cryptolink's failure to meet reporting obligations and respond to information requests.
- Previously, the company had settled a penalty of $56,340 for compliance issues.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has taken significant action against Cryptolink Pty Ltd, the leading operator of Bitcoin and cryptocurrency ATMs in Australia.
Effective from August 9, AUSTRAC announced a three-month suspension of Cryptolink’s status as a Virtual Asset Service Provider (VASP) due to the company's shortcomings in anti-money laundering compliance.
VASP designates any business that manages the transfer of digital assets for clients, which, under Australian law, must report specific transactions to authorities. Brendan Thomas, CEO of AUSTRAC, highlighted that while Cryptolink had previously met conditions of an enforceable undertaking, it fell short on essential reporting duties, particularly in submitting threshold transaction reports.
Moreover, Cryptolink's lack of response to AUSTRAC’s information requests raised operational risks too high for the agency to permit continued operations.
Despite settling a previous penalty of $56,340 in October 2025 and addressing prior compliance issues, Cryptolink remains under scrutiny, with AUSTRAC indicating that earlier penalties did not adequately resolve ongoing concerns.
Industry Impact
The suspension of Cryptolink's 96 ATMs is notable within Australia's rapidly growing network of cryptocurrency ATMs, which now totals around 1,800, a sharp rise from just 23 in 2019. This network handles about $275 million in transactions annually, according to AUSTRAC.
Regulators are increasingly concerned that these ATMs might be exploited for scams and money laundering, with some industry leaders acknowledging the sector's vulnerability to illicit activities. The Australian Home Affairs Minister has proposed that AUSTRAC be granted greater authority to regulate or prohibit high-risk products, including crypto ATMs.
“We will continue to closely monitor the cryptocurrency sector and will act against significant risks or non-compliance,” Thomas stated, emphasizing AUSTRAC's commitment to oversight in the space. The suspension will last until November 9, 2026.
