AUSTRAC Urges Australian Regulators to Take Action Against Crypto Crimes
The Australian Transaction Reports and Analysis Center (AUSTRAC) is a financial intelligence agency of the Australian government.
AUSTRAC’s Report
A recent report published by AUSTRAC has directed the attention of regulators towards the rise of crypto crimes in the continent at an alarming rate. As a counter measure, the AUSTRAC report has suggested the implementation of stringent regulatory reforms on the local crypto sector.
The report also called for international cooperation to combat money laundering practices. The 2024 AUSTRAC Money Laundering National Risk Assessment charter shared a detailed description of methods that crypto criminals employ in order to launder money.
This report also cited a visible increase in the overall illegal utilization of digital currencies, digital currency exchanges, and unregistered remittance services. On the other side of this argument, cash has remained the main means of operation for money launderers.
As per this alternative theory, despite the digitization of investment instruments on an international scale, money launderers prefer to use traditional financial channels for an illegal transfer of funds, cash, real estate, and luxury products. On this account, AUSTRAC also published a chart to indicate the overall utility of financial routes in terms of high to low-risk ratings.
Use of Crypto in Criminal Activities
This chart placed cryptocurrencies on a lower-high risk exposure. In the same manner, AUSTRAC also projected an upcoming increase in the use of crypto for financial anonymity and faster transaction speed.
Some of the main points raised in this report include asserting that cryptocurrencies and exchange platforms may be exploited for unregistered remittances and bullion dealings.
As a consequence, the Australian regulatory agency has called for tightening regulatory reforms to regulate the local crypto sector. Furthermore, AUSTRAC also leans in favor of mandating the crypto trading platform to apply for a registration in accordance with the AML and CTF ACT.
This report has also noted that digital currencies are used for transfer of value and it can pose a threat to an increase in money laundering vulnerability in the next 3 years.
The report has noted that digital currency usage can seep into various legitimate sectors of the industry and serve as opportunities for criminals.
AUSTRAC analysts have emphasized on the importance of the adaption of regulatory reforms and international communication to crack down against money laundering syndicates using cryptocurrencies and digital assets.
Australia Imposes Ban on Use of Crypto and Credit Card on Gambling Sites
The government of Australia has also imposed a ban on the use of cryptocurrencies and credit cards allowed on gambling sites. As per the new regulatory crackdown against payment services providers, the violating parties stand to sustain a financial penalty of 234,750 Australian dollars or $155,000.
CEO of Responsible Wagering Australia, Kai Cantwell, has retained that his platform is one of the few independent gambling services providers in Australia.
He stated that these regulations are going to assist investors in refraining from obsessive gambling addiction and serve as a consumer protection measure. The CEO further noticed that it is important for the financial regulatory agencies to watch out for the average consumers.
At the same time, the executive retained that investors can retain control of their gambling addiction on account of these restrictions.
There is a rapid decrease in the total number of Bitcoin ATMs. The drastic decline in Bitcoin ATMs took place in areas of the US and Europe with a staggering 334 units going out of business within the duration of 40 days.
The report stated that during June, 107 Bitcoin ATMs became out of commission. This sudden decline led to 10 consecutive month increase in new ATM installations.
Meanwhile as of 5th July about 227 crypto ATMs closed shop on the international scale. There are some nations such as Australia and Spain have continued to report a consistent increase in the total number of Bitcoin ATMs.
However, surprisingly USA and Europe are the biggest contributors to the global reduction of total Bitcoin ATMs as they account for 82.6% of the global Bitcoin and crypto ATMs. These regions slashed 182 and 239 ATMs in the last and ongoing month thus far.
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