Australia's AUSTAC Shuts Down 96 Crypto ATMs

TL;DR

• AUSTRAC has suspended crypto ATM operator Cryptolink's registration, shutting down 96 crypto ATMs throughout Australia

• The suspension will remain in effect for three months

• Cryptolink failed to file required transaction reports and failed to respond to an information request

• From a sample of 90 heavy ATM users, 85% of transactions involved suspected scam proceeds or money-mule activity

AUSTRAC, the Australian financial crime regulator, has suspended crypto ATM operator Cryptolink’s registration, shutting down 96 crypto ATMs throughout Australia. The suspension took effect on Sunday and will remain in effect for three months. Cryptolink has failed to file the required transaction reports as and failed to answer an information request. 

Not Cryptolink's First Run-In With AUSTRAC

This is not the first time Cryptolink has been in legal trouble. Back in 2025, the company was fined AUD 56,340 and got an enforceable undertaking to fix compliance gaps. Back then, the company fixed the gaps and paid the fine. This time, however, AUSTRAC was forced to shut the company down.

Brendan Thomas, AUSTRAC's chief executive, announced the suspension Monday:

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.

The suspension is the most forceful tool the regulator has used yet. But in 2025, they outright refused to renew an ATM operator’s registration. It was last year too that limits of AUD 5,000 were added for withdrawals and deposits on crypto ATMs.

Scam Proceeds and a Shrinking Industry

AUSTRAC has been moving against the sector for a while now. Data from their taskforce explains why. From a sample of 90 heavy ATM users, 85% of the transactions had money-mule purposes or were suspected scam proceeds.

The increased regulatory focus on the crypto ATM companies is just more bad news for a crypto niche that’s been on a downward trajectory for some time now. For example, Bitcoin Depot, North America’s largest crypto ATM operator filed for bankruptcy protection in May, the company is winding down its network of 9,000 ATMs.