Australia's financial crimes watchdog, AUSTRAC, has put crypto ATM operators on notice, highlighting concerns that these machines may facilitate money laundering and scams. In a report released, AUSTRAC reported alarming trends linked to crypto ATMs, suggesting their role in fraudulent activities and scams, particularly affecting vulnerable populations. With over 1,648 crypto ATMs now operational in Australia—up from just 23 in 2019—the need for stronger regulatory measures has become pressing. AUSTRAC emphasizes that all Digital Currency Exchanges (DCEs), including those operating ATMs, must comply with the Anti-Money Laundering and Counter-Terrorism Financing Act, which entails identity checks and transaction monitoring. This regulatory focus comes in light of a recent incident where Australian police dismantled a crime syndicate responsible for theft from multiple crypto ATMs. The increasing exploitation of crypto ATMs by scammers has led some U.S. lawmakers to propose new regulations to address fraud, including transaction limits and refund protections for victims. Overall, the rising number of fraud cases connected to crypto ATMs has prompted urgent calls for compliance and reform in the industry.

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