Australia's financial crime regulator AUSTRAC suspended for three months the virtual asset service provider registration of Cryptolink, the country's largest crypto ATM operator, and halted operations at 96 ATMs.

Decript, a blockchain media outlet, reported on Aug. 10 local time that the move stopped 96 crypto ATMs operated by Cryptolink.

AUSTRAC judged that Cryptolink did not properly fulfill basic reporting obligations under its anti-money laundering framework. It said reporting on cash transactions above certain thresholds was insufficient, and the company did not respond appropriately to the regulator's requests for information.

AUSTRAC Chief Executive Brendan Thomas (브렌던 토머스) said Cryptolink had met the terms of an earlier remediation undertaking but later failed to carry out basic reporting obligations, including reporting large cash transactions. He added that, for now, it had determined the risk was too high for Cryptolink to continue operating.

Cryptolink had already entered into an enforceable undertaking with AUSTRAC in October 2025 and paid a $56,340 fine. At the time, AUSTRAC's crypto task force pointed to suspected reporting delays and weak risk assessment. But the matter did not end with the earlier sanction, and the regulator moved months later to suspend the registration again.

The sanctions show the possibility that enforcement could expand beyond an individual operator to Australia’s wider crypto ATM market. Australia currently operates the largest number of crypto ATMs in the Asia-Pacific region. AUSTRAC counts about 1,800 machines, a sharp rise from 23 in 2019. The Australian Federal Police reports that about $275 million moves each year through bitcoin and crypto ATMs in the country.

Regulators view the point of contact from cash to cryptocurrency as a channel for fraud and money laundering. With the industry itself also seen as recognizing that the crypto ATM sector has become a refuge for criminals, oversight of cash-based services is strengthening.

In this situation, Australia’s home affairs minister proposed giving AUSTRAC the power to control or ban high-risk products, including crypto ATMs. AUSTRAC's crypto task force has also been in contact with relevant operators since late 2024.

The home affairs minister said AUSTRAC would continue to closely monitor the crypto sector, especially crypto ATM operators, and would take action if significant risks or non-compliance are confirmed. The suspension of Cryptolink's registration runs until Nov. 9, 2026.

The move again showed that crypto ATMs are directly subject to anti-money laundering regulations. It is read as a signal that, as the number of machines has rapidly increased, operators' reporting systems and the intensity of supervision are also rising.