Australia’s financial crime regulator, Australian Transaction Reports and Analysis Centre (AUSTRAC), has suspended the registration of crypto ATM operator Cryptolink Pty Ltd for three months, starting August 9, forcing the company to take its 96 cryptocurrency ATMs offline over concerns about anti-money laundering and counter-terrorism financing compliance.
In the official announcement, the AUSTRAC said the suspension prevents Cryptolink from operating its cryptocurrency automatic teller machines (CATMs) during the suspension. Cryptolink is a registered virtual asset service provider (VASP) that allows customers to exchange cash for cryptocurrency through its ATM network.
Reporting failures trigger suspension
AUSTRAC CEO Brendan Thomas said the regulator remains concerned about Cryptolink’s ability to manage high-risk transactions through its CATMs. The action follows an enforceable undertaking that Cryptolink entered into with AUSTRAC in October 2025. At the time, the regulator’s Cryptocurrency Taskforce identified alleged breaches of Australia’s anti-money laundering laws, including late threshold transaction reporting and weaknesses in the company’s AML/CTF risk assessments.
The regulator also issued Cryptolink a A$56,340 infringement notice, with the company later paying the penalty.
Although Cryptolink later met the conditions of the undertaking, AUSTRAC said the company subsequently failed to meet basic reporting obligations, particularly requirements to submit threshold transaction reports. It also failed to respond to an AUSTRAC request for information. The company also failed to respond to an AUSTRAC request for information, according to the regulator.
Crypto ATM crackdown grows
The action comes as regulators in Australia and across the world increase scrutiny of crypto ATMs over concerns about scams, money laundering and other financial crimes.
AUSTRAC has been monitoring the sector through its Crypto Taskforce since late 2024. Crypto ATM operators in Australia must conduct customer checks, monitor transactions and submit required threshold and suspicious matter reports. Authorities have also introduced transaction limits and other controls to reduce the misuse of these machines.
The crackdown is also spreading overseas. Canada has moved to ban crypto ATMs over concerns about fraud and money laundering, while some U.S. cities have proposed stronger scam warnings and additional safety measures for users.
The tighter rules are also putting pressure on operators. Bitcoin Depot, one of North America’s largest crypto ATM companies, filed for Chapter 11 bankruptcy in May and began winding down its network of about 9,000 kiosks. Its CEO said stricter compliance rules, transaction limits and bans in some jurisdictions had made the company’s business model unsustainable.
The developments show that regulators are taking a closer look at cash-to-crypto services as governments seek stronger safeguards against financial crime and scams.
No funds seized
AUSTRAC’s announcement does not indicate that Cryptolink customers’ cryptocurrency or cash was seized or frozen as part of the suspension. Instead, the order prevents Cryptolink from operating its 96 CATMs while its registration remains suspended. AUSTRAC said it will monitor the company during the suspension.
AUSTRAC said it will continue monitoring Cryptolink during the three-month suspension and could take further action if serious compliance risks or non-compliance are identified.
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