Global crypto chaos or coordinated opportunity? This week, we’re diving into how governments and watchdogs around the world are reacting to the ever-evolving crypto frontier—with urgency, concern, and a touch of strategic ambition.
In Australia, AUSTRAC puts crypto ATMs under the microscope, calling out AML/CFT weak spots.
Meanwhile, cybersecurity heavyweight Samczsun sounds the alarm on North Korea’s increasingly sophisticated crypto heists.
And in the UK, industry leaders are knocking on the Prime Minister’s door, demanding a bolder vision for crypto’s future on British soil.
Want to find out more about how these threads weave into the global crypto narrative? Let’s get into it.
AUSTRAC warns crypto ATM service providers of AML/CFT failings
AUSTRAC has issued a stern warning to cryptocurrency ATM providers, emphasizing the need for compliance with anti-money laundering (AML) regulations. The service providers which run these ATMS, which are known locally as “crypto kiosks,” must implement appropriate risk management systems to prevent their use in criminal activities such as money laundering and scams.
The AUSTRAC CEO, Brendan Thomas, emphasized that some businesses are failing to meet their obligations under the AML/CTF Act, despite AUSTRAC’s ongoing guidance and support. The regulator is especially concerned with crypto ATMs being used to facilitate scams and transfer illicit funds.
AUSTRAC has stepped up its coverage and surveillance and warned that failure to comply could result in enforcement actions, including financial penalties and criminal charges. The regulator reiterated its request that crypto kiosk service providers register with AUSTRAC, report suspicious activities, and conduct thorough customer due diligence procedures.
The announcement is part of a larger and ongoing AUSTRAC initiative to ensure digital currency exchanges and related services uphold Australia’s financial integrity and protect the community from financial crime.
Why this matters:
Following on AUSTRAC’s previous warning to crypto ATM operators in December 2024, this clearly demonstrates Australia’s commitment to safely integrating cryptocurrencies into the country’s financial ecosystem.
Takeaway for compliance teams and crypto ATM operators:
It is important for crypto industry role-players and their compliance officers who wish to trade in Australia to take heed of this story: The regulators are conscientious and diligent, and the consequences of AML/CFT deficiencies are real.
Learn more about this story at AUSTRAC.
Cybersecurity expert warns of North Korea’s evolving crypto hacking methods
Technology investment company Paradigm’s leading researcher, Samczsun, has warned the crypto industry that North Korea’s hacking operations are changing, and are not merely restricted to the infamous Lazarus Group. In the wake of the Bybit hack, he noted that North Korean groups have shifted their strategic focus, which suggests increasing levels of sophistication and coordination among the country’s hackers.
Instead of a single group, North Korea’s cybercrime activity appears to now engage wider networks of state-sponsored hacking teams which operate under multiple different fake names. This makes it more difficult for global cybersecurity efforts to track and mitigate threats effectively.
Samczsun emphasized the need for the crypto industry and regulators to adjust rapidly, as traditional defenses may not be sufficient against these evolving tactics. His warning comes amid increasing concern over North Korea’s use of crypto theft to sponsor nuclear weapons proliferation, with billions reportedly stolen over the past few years.
He stressed that without improving the industry’s understanding of how these enemies operate, it will make it harder to stop.
Why this matters:
The importance of countering the evolving threat of North Korean (and other) crypto hacking groups to cybersecurity cannot be understated, as it could, in consequence, adversely impact world security if illicit nuclear weapons proliferation continues.
Takeaway for investigators:
It is important for crypto crime investigators to be as nimble, adaptable, and proactive as their North Korean adversaries are proving to be, to protect both the industry and contribute to real-world safety.
Learn more about this story at Crypto News.
UK trade bodies urge Prime Minister to prioritize crypto
A coalition of six crypto trade entities in the UK has joined forces to urge Prime Minister Keir Starmer and his government to follow the US model for developing the crypto industry by developing a clearer ‘strategic focus’ on cryptocurrencies and designating a ‘special envoy’ for them.
The group wants the PM to implement a strategic action plan for cryptocurrencies and blockchain technologies in the UK to enhance the country’s competitiveness, arguing that such a step could benefit the economy by as much as £57 billion ($73 million) within ten years.
They also advocated for the appointment of a ‘special envoy’ to spearhead the growth of the UK crypto industry, in the fashion of the US’s so-called ‘crypto czar’.
Other suggestions included exploiting the nexus of AI, blockchain, and quantum computing to foster innovation and improve security, and creating a collaborative forum for engagement between the industry and government to enhance policymaking.
Why this matters:
The six-entity-strong coalition’s request for the UK government to take a proactive and collaborative position on crypto suggests that the country’s trade organizations are both committed to the future of the industry and concerned that progress is lagging behind competitors such as Dubai, Singapore, and parts of the EU.
Takeaway for government:
PM Starmer’s cabinet should both take heart from the crypto industry’s concern for the UK’s economic future, and heed from the suggestion that a collaborative approach between the industry and government should inform policy-making decisions.
Learn more about this story at Cointelegraph.
