The Australian Transaction Reports and Analysis Centre (AUSTRAC) has suspended Cryptolink Pty Ltd’s Virtual Asset Service Provider registration for three months, beginning 9 August, preventing the company from operating its 96 cryptocurrency ATMs nationwide.
AUSTRAC stated the suspension followed Cryptolink’s failure to meet anti-money laundering and counter-terrorism financing (AML/CTF) requirements despite an earlier enforceable undertaking. The regulator cited failures in filing mandatory threshold transaction reports and responding to information requests.
The suspension stems from alleged failures to meet AML/CTF reporting requirements. Under Australian law, financial institutions and registered virtual asset service providers must submit Threshold Transaction Reports (TTRs) for qualifying cash transactions.
AUSTRAC alleged that Cryptolink failed to submit several required reports despite previous warnings over similar compliance issues. The regulator also said the company did not adequately respond to requests for additional information. AUSTRAC CEO Brendan Thomas said the regulator remained concerned about the company’s ability to manage high-risk transactions conducted through its crypto ATM network.
Thomas said, “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. While Cryptolink met the conditions stipulated in its enforceable undertaking, it subsequently failed to meet basic reporting obligations, particularly for threshold transaction reports. The company failed to submit these required reports or respond to AUSTRAC’s request for information; thus, we’ve deemed it too high risk to continue operating at present.”
Suspension is not a one-time enforcement action, but rather a step in a lengthy regulatory procedure. In response to the proliferation of cryptocurrency ATMs around Australia, AUSTRAC increased its regulatory control of cryptocurrency enterprises in December 2024. In order to determine if cryptocurrency business companies have appropriate AML/CTF processes in place, the regulator initiated targeted inspections.
The AUSTRAC Cryptocurrency Taskforce was formed as a result of these reviews, and it evaluated compliance procedures with regard to various virtual asset service providers. The group appears to have discovered a number of flaws in Cryptolink throughout its investigation, including delayed reporting of threshold transactions and flaws in the risk assessment system for anti-money laundering and counter-terrorism financing reasons. Consequently, in October 2025, AUSTRAC and Cryptolink signed an enforceable commitment.
Additionally, AUSTRAC sent Cryptolink a AUD 56,340 (approx. $39,811) violation notice, which it has already paid. Oversight did not end when the fine was paid. The undertaking needed ongoing cooperation and compliance and was legally obligatory. AUSTRAC later concluded that the company’s failure to meet the standard was caused by the lack of required reporting, even though there had been some improvement in the early phases.
Allegations that Cryptolink did not comply with Australia’s AML/CTF regulations form the basis of AUSTRAC’s enforcement action. Although cryptocurrencies are legal, authorities have long cautioned that if companies don’t have enough security, digital assets may be abused.
Thomas further noted the regulator remained concerned about Cryptolink’s ability to manage high-risk transactions conducted through its crypto ATM network.
Thomas noted, “Cryptolink was allowed to comply but could not meet its obligations despite the enforceable undertaking. We will continue to keep a close watch on the cryptocurrency sector, particularly businesses operating crypto ATMs, and will act where we identify serious risks or non-compliance.”
In order to prevent money laundering, financing of terrorism, and other financial crime issues, Australian authorities have worked to promote the development of blockchain and digital asset technology. Regulators have emphasised the significance of robust compliance procedures and continuous cooperation from companies operating in the market as the sector grows.
