Australia's financial crime regulator has suspended the registration of crypto ATM operator Cryptolink for three months, ordering all 96 of its machines offline after the company failed to meet basic anti-money laundering (AML) reporting requirements.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) stated that Cryptolink failed to submit mandatory threshold transaction reports and did not respond to the regulator's requests for information. Threshold transaction reports are required under Australia's AML/CTF framework for cash transactions of A$10,000 or more, serving as a core tool for detecting potentially illicit flows.

The suspension follows an enforceable undertaking that Cryptolink agreed to with AUSTRAC in October 2025, after the regulator identified late reporting of large cash transactions along with deficiencies in the company's anti-money laundering and counter-terrorism financing (AML/CTF) risk assessments. Cryptolink also paid an infringement notice of A$56,340 (approximately $36,700).

AUSTRAC CEO Brendan Thomas said the regulator remained concerned about Cryptolink's capacity to manage high-risk transactions processed through its crypto ATMs.

"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," Thomas said.

"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."

Thomas confirmed that AUSTRAC would continue monitoring Cryptolink to ensure full compliance with the suspension order.

"Cryptolink was given the opportunity 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 take action where we identify serious risks or non-compliance," he said.

The enforcement action underscores intensifying regulatory scrutiny of crypto ATM operators in Australia, where authorities have flagged the machines as a significant money-laundering and scam risk. AUSTRAC's Crypto Taskforce found that 85% of transactions conducted by the 90 most frequent crypto ATM users were linked to scams or money-mule activity. Australia has required digital currency exchange providers to register with AUSTRAC since 2018, and the agency has progressively tightened oversight of the sector as crypto ATM networks have expanded.

The suspension took effect in early August 2026 and is scheduled to last three months.