Australia’s financial watchdog has taken action against cryptocurrency automated teller machine (ATM) operator Cryptolink, suspending the company’s registration for three months over concerns on its compliance with anti-money laundering requirements.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) said Cryptolink’s Virtual Asset Service Provider (VASP) registration was suspended for three months from August 09. As a result, the company’s Bitcoin ATMs will not be allowed to operate during the suspension period.
Cryptolink operates 96 cryptocurrency ATMs across Australia, with most of its machines located in major cities such as Sydney, Melbourne and Brisbane. The company’s ATMs allow users to exchange cash for Bitcoin.
The latest regulatory action comes as Australian authorities continue to increase scrutiny of cryptocurrency ATMs because of their potential use in financial crimes, including money laundering and scams.
Reporting Failures Lead to Regulatory Crackdown
According to AUSTRAC, Cryptolink failed to meet basic reporting obligations, particularly requirements related to threshold-surpassing transaction reports. The regulator also said the company did not respond to a request for information.
AUSTRAC CEO Brendan Thomas said the regulator remains concerned about the company’s ability to manage transactions considered to be high risk.
“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,” said Thomas.
The suspension follows an enforceable undertaking that Cryptolink entered into with AUSTRAC in October 2025. At the time, AUSTRAC’s Cryptocurrency Taskforce identified alleged compliance problems involving late transaction reporting and weaknesses in the company’s risk assessments.
Cryptolink was also issued an infringement notice worth $56,340, which the company has already paid.
Despite the previous regulatory action, AUSTRAC said it continues to have concerns about Cryptolink’s compliance with its obligations.
Australia Tightens Rules Over Crypto ATM Risks
The action against Cryptolink is part of a larger Australian crackdown on the risks associated with cryptocurrency ATMs. Authorities have been increasing their efforts since late 2024 amid concerns that these machines can be used to facilitate scams and other financial crimes.
Australia reportedly has the largest number of cryptocurrency ATMs among countries in the Asia-Pacific region, making regulation of the sector an important focus for financial authorities.
The government has also introduced measures aimed at limiting potential losses from crypto ATM scams. One key measure is to impose ATM operators with an AUD 5,000 limit on deposits and withdrawals through cryptocurrency ATMs.
AUSTRAC has highlighted particular concerns about older Australians. Data collected from nine crypto ATM providers showed that people aged over 50 accounted for nearly 72% of the total transaction value.
The regulator said many users purchase cryptocurrency with cash and some may be targeted by scammers who convince victims to transfer money through crypto ATMs.
The suspension of Cryptolink therefore represents another major step in Australia’s efforts to strengthen oversight of cryptocurrency ATM operators.
With regulators continuing to focus on reporting standards, risk management and consumer protection, crypto ATM businesses are likely to face closer scrutiny over how they handle high-risk transactions.
