AUSTRAC Halts 96 Cryptolink Crypto ATMs Over Compliance Risks

Australian authorities have identified crypto ATMs as vulnerable to criminal misuse because of their ability to convert physical cash into cryptocurrency rapidly. AUSTRAC’s warnings about cryptocurrency ATM scams state that the machines can be exploited in money laundering and scams, while cryptocurrency transfers generally cannot be reversed once funds reach an address outside the customer’s control.

Earlier enforcement against the same operator included an infringement notice of A$56,340, roughly US$39,000 at current exchange rates, which Cryptolink paid without admitting liability, AUSTRAC stated. At the Oct. 31, 2025 exchange rate, the Australian-dollar penalty was worth approximately US$36,900. The regulator established its Crypto Taskforce amid heightened supervision of cryptocurrency ATM operators and has conducted supervisory engagements with the sector since late 2024.

“Cryptolink was given the opportunity to comply but could not meet its obligations despite the enforceable undertaking,” AUSTRAC said.

Regulatory scrutiny of cryptocurrency kiosks has also intensified in the United States as authorities focus on fraud losses, transaction controls and consumer protections. U.S. lawmakers introduced legislation targeting crypto ATM scams in June after reported American losses exceeded $333 million in 2025, proposing transaction limits, scam warnings, customer due diligence and expanded record-keeping requirements.

State authorities have pursued separate enforcement measures involving individual operators, including a Missouri lawsuit targeting more than 140 kiosks. The case against Coinflip alleges fraud-related deficiencies and insufficient fee disclosures, with crypto ATM fees reaching as high as 21.9% in transactions described by the state’s complaint. Coinflip disputed the allegations and said it would fight the lawsuit.

Tennessee adopted a broader approach by prohibiting cryptocurrency kiosks statewide after lawmakers cited scam losses and risks to older consumers. Under Tennessee’s crypto ATM ban, operators and property managers were required to remove or deactivate existing machines by July 1. Coinflip and a second operator sued to block the law, and a federal court denied their request, allowing the ban to take effect, Tennessee Attorney General Jonathan Skrmetti announced July 7.

Monitoring of Cryptolink will continue throughout the three-month suspension, which runs until early November, to ensure the company complies with the order, AUSTRAC stated.