Australia’s financial crime regulator has suspended Cryptolink’s virtual asset service provider registration, forcing the company’s 96 cryptocurrency ATMs offline for three months. AUSTRAC said the move was driven by renewed concerns about anti-money laundering and counter-terrorism financing compliance at the operator.

The action keeps pressure on cash-to-crypto businesses in Australia and comes after earlier enforcement against Cryptolink. AUSTRAC said it will continue monitoring the company during the suspension, which runs until early November.

Regulator cites renewed compliance failures

AUSTRAC said Cryptolink’s machines, which let customers exchange cash for cryptocurrency, were ordered offline after the regulator concluded the company remained a high risk to operate at present. The agency pointed to ongoing concerns about the operator’s ability to manage high-risk transactions through its crypto ATM network.

According to AUSTRAC, Cryptolink had met conditions imposed under an earlier enforceable undertaking, but later failed to satisfy basic reporting duties. The regulator said the shortcomings were particularly related to threshold transaction reporting requirements, and added that the company also failed to submit required reports or respond to an information request.

Follow-up to 2025 enforcement

The suspension follows AUSTRAC’s enforcement action against Cryptolink in October 2025. At that time, the regulator alleged that the company had reported large cash transactions late and had weaknesses in its AML/CTF risk assessments.

As part of that earlier case, Cryptolink was required to engage third-party reviewers to examine its transaction reporting and compliance controls while it worked through issues identified by AUSTRAC’s Crypto Taskforce. AUSTRAC said the latest suspension reflects fresh concerns that arose after those earlier measures.

Why crypto ATMs are under scrutiny

Australian authorities have repeatedly identified crypto ATMs as vulnerable to criminal misuse because they can rapidly convert physical cash into digital assets. AUSTRAC has warned that such machines can be used in money laundering, scams and money mule activity.

The regulator has also emphasized that cryptocurrency transfers are generally irreversible once funds are sent to an address outside a customer’s control. That feature has made crypto ATM activity a focus of wider supervision across the sector since late 2024, when AUSTRAC began supervisory engagements with operators and established its Crypto Taskforce.

Penalty history and next steps

Earlier action against Cryptolink also included an infringement notice for A$56,340, which AUSTRAC said the company paid without admitting liability. The source article noted that this amount was roughly US$39,000 at current exchange rates.

AUSTRAC said it will monitor Cryptolink throughout the three-month suspension to ensure the operator complies with the order. Based on the regulator’s timeline, the shutdown is due to remain in place until early November.

Source: news.bitcoin.com