Australia’s financial intelligence agency AUSTRAC, has warned crypto ATM operators on missing anti-money laundering checks and helping criminals launder money.

In a statement released Monday, the AML watchdog highlighted “worrying trends” of suspicious activities and transactions.

The notice arrives months after a panel of experts from AUSTRAC formed an internal taskforce to address AML and terrorism financing issues using crypto ATMs. The taskforce comprises members from the watchdog’s regulatory, enforcement and intelligence areas.

Brendan Thomas, CEO of AUSTRAC, noted that the panel has been busy “engaging with businesses” to understand the risks and address them with compliance.

“It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”

Australia Hosts Nearly 1,600 Crypto ATMs, Numbers Spiked Since 2019

According to AUSTRAC estimates, there are around 1,600 crypto ATMs in use around the country. “Australia has the highest number of crypto ATMs in the Asia Pacific region,” the statement read.

In 2019, Australia hosted only 23 crypto ATMs nationwide, which spiked to 60 in 2022. Over the past three years, the number of Bitcoin ATMs has “grown rapidly,” it added.

Additionally, crypto exchanges have been regularly installing ATMs, which are used by customers to deposit cash and buy Bitcoin.

“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” CEO Thomas, noted.

He further noted that AUSTRAC will take action against operators who don’t comply with the law.

AUSTRAC Works Towards Crypto Compliance Push

The AML regulator has already targeted 13 remittance and digital currency exchange providers due to a lack of compliance. Besides, the agency is stated that some have face conviction, protection or charges for serious offences.

Meanwhile, the country’s financial regulator ASIC has taken cautious steps to secure Australia’s growing crypto ecosystem. The agency has helped take down over 5,500 fraudulent investment websites, more than 1,000 phishing links, and 615 crypto scam sites since July 2023.

In a recent move, Australian police knocked down an organized crime syndicate involved in burglaries targeting crypto ATMs and Pokémon collector cards.

The post Aussie Watchdog Places Crypto ATM Providers ‘On Notice,’ Warns Over Missing AML Checks appeared first on Cryptonews.

Argentine lawyer Gregorio Dalbon has reportedly called on Interpol to issue a Red Notice for crypto entrepreneur Hayden Davis, linking him to the collapse of the Libra memecoin.

Davis is the CEO of Kelsier Ventures and a central figure behind the controversial Solana-based Libra memecoin whose market capitalization plunged by more than $4 billion amid accusations of a pump-and-dump scheme

Reports suggest that Davis and other key figures behind the Solana-based token amassed more than $107 million before the project imploded. Adding to the controversy, Davis allegedly claimed he wielded political influence over Argentine President Javier Milei.

Despite the issues, Davis has publicly defended himself. In an interview with YouTube investigator Stephen Findeisen, better known as “Coffeezilla,” he dismissed allegations of fraud and characterized the Libra token’s downfall as a business failure rather than a deliberate scam.

Interpol’s red notice

According to a local media report, Dalbon submitted his request to Eduardo Taiano, the lead prosecutor investigating the case, and Judge María Servini overseeing the proceedings.

Dalbon argued that Davis played a pivotal role in creating and promoting the Libra memecoin. He raised concerns about Davis’ ability to evade legal action, citing his financial resources and foreign residency as potential risks.

The lawyer further warned that allowing Davis to remain at large could obstruct legal proceedings, especially given the scale of investor losses.

The report stated:

“The possibility that Davis may leave his country of residence or go into hiding to avoid criminal liability for the events under investigation is aggravated by his financial resources , which could make it easier for him to move around or remain in hiding, thus frustrating the progress of the investigation.”

Considering this, Dalbon wants an international arrest warrant (Red Notice) issued for Davis.

A Red Notice is an Interpol request urging global law enforcement agencies to arrest a suspect pending extradition. However, compliance remains voluntary as individual countries decide whether to act based on their national laws.

This latest move adds to the intensifying investigation into the Libra memecoin scandal. Last week, Prosecutor Taiano took steps to secure key digital evidence, including transaction records and promotional materials. He also initiated efforts to freeze over $100 million allegedly pocketed by the token’s creators.

Mentioned in this article

When the CyberKongz Wells Notice dropped, the Web3 gaming community went into a frenzy. Issued by the U.S. Securities and Exchange Commission (SEC), this notice has huge implications for NFTs. As NFTs continue to change the digital gaming landscape, understanding how they’re classified and what compliance looks like is more important than ever.

The SEC Wells Notice: What it means for CyberKongz

In April 2021, CyberKongz sold Genesis Kongz NFTs. The SEC treated these NFTs as securities and issued a Wells notice – an official letter saying enforcement action is possible. CyberKongz has argued it was a contract migration not a primary sale, but the SEC’s stance shows the growing scrutiny of NFT securities in the broader Web3 space.

This isn’t just about one project. It’s a test case. If the SEC treats these NFTs as securities, it will change the tokenomics, fundraising and community governance models of many blockchain gaming projects.

CyberKongz has 30 days to respond and its defense will shape the broader conversation around digital gaming assets. Time is running out.

Industry Response

The CyberKongz Wells Notice has sparked a lot of discussions. Industry leaders like Axie Infinity are coming out in support of CyberKongz saying increased enforcement will at least force the U.S. government to define the rules for Web3 gaming projects.

Once regulatory clarity comes, blockchain game developers will be able to build sustainable business models. Compliance will now be a primary focus, guiding token distribution, in-game economies, and user incentives. In summary, the industry’s response today will establish the foundation for years to come.

Global Regulatory Comparison

While the SEC’s stance is getting all the attention, it’s worth noting the U.S. is not the only one figuring out how to regulate NFTs. The global regulatory landscape for NFTs is varied and each region’s approach will impact how projects like CyberKongz will comply.

Europe: Under the upcoming MiCA (Markets in Crypto-Assets) framework, NFTs may get clearer definitions and guidelines. This could be a more stable environment for blockchain gaming companies to operate. Some European regulators are saying NFTs are outside the scope of traditional securities laws while others are pushing for more oversight especially if NFTs are used as investment vehicles.

Asia: Several Asian countries – Singapore and Hong Kong – are launching pro-innovation frameworks to encourage responsible experimentation. But enforcement agencies are still watching NFT and Web3 gaming closely to protect investors and prevent illicit activities. Finding the balance between growth and consumer safety is the main challenge.

Latin America and Africa: Emerging markets take a more relaxed approach, seeing NFTs as tools for financial inclusion and economic development. Regulatory bodies may not intervene as quickly but they’re not ignoring the risks. As these regions become crypto hubs, local regulators may look to the U.S. and Europe for guidance on how to craft their own rules.

This global NFT regulatory landscape is a nightmare for projects like CyberKongz. Companies that want to operate in multiple jurisdictions must navigate a web of different requirements. Strategic compliance planning will be key to future success.

Blockchain Compliance and Regulation

If gaming tokens are classified as securities, it will significantly impact the industry. Compliance requirements—including disclosures and investor protection—will alter how blockchain games distribute and manage their tokens. Many startups in the space have grown by experimenting with tokenomics, community governance and open-source ecosystems. Under more regulation these core elements will need to be rethought.

As more gaming companies get scrutinized, adapting to securities laws will be a survival requirement. Blockchain compliance in gaming is not just about avoiding legal trouble, it’s about building trust. Clear compliance standards will help projects avoid getting caught in the crosshairs of regulators and create a healthier more sustainable industry.

Navigating the New Landscape

Going forward, advanced compliance solutions will be a must. Implementing robust AML (Anti-Money Laundering) and KYC (Know Your Customer) protocols, for example, will help prevent illegal activities and create a safer and more trustworthy environment for players and investors. Technology solutions can help with compliance so projects can focus on innovation without compromising on the rules.

As the rules change we’ll see more collaboration between gaming companies, regulators and consumer protection agencies. The goal is to find the balance where innovation can thrive without compromising investor and player protections. The long term result will be a more transparent, accountable and sustainable blockchain gaming industry – one that will emerge stronger and more resilient after the CyberKongz Wells Notice and similar challenges.

Conclusion

The CyberKongz Wells Notice has brought compliance, transparency and regulatory awareness to the forefront. The outcome of this case combined with the different international approaches to NFT regulation will have long term impact to the Web3 gaming landscape. By being proactive with compliance and keeping an eye on global regulatory trends blockchain gaming projects can stay on the right side of the law – while delivering the most innovative experiences to players worldwide.

Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Owen Skelton.