Australia’s government is moving to empower its anti-money laundering agency, AUSTRAC, with broader authority to regulate cryptocurrency ATMs amid rising concerns over illicit activities.
On Thursday, Tony Burke, the nation’s Minister for Home Affairs, introduced proposed legislative changes aimed at strengthening AUSTRAC’s capacity to restrict or ban certain high-risk financial products, specifically targeting crypto ATMs. Although detailed provisions of these new powers are yet to be disclosed, officials indicated that further information will be released in the near future.
Cryptocurrency ATMs operate by allowing users to convert cash or bank card funds into digital currency, which is then delivered to a crypto wallet. While these machines provide convenient access to cryptocurrencies, they have been increasingly exploited for fraud and money laundering. Scammers frequently lure victims into transferring funds to designated wallets, after which they vanish, leaving victims defrauded.
According to data from Coin ATM Radar, Australia currently hosts approximately 2,100 crypto ATMs—a significant jump from just 23 in 2019 and 200 three years ago. AUSTRAC CEO Brendan Thomas highlighted this rapid expansion, emphasizing that the proliferation of such terminals presents new challenges for regulatory oversight.
AUSTRAC’s recent analysis underscores the risks associated with crypto ATMs. A sample review of 90 of the most active users revealed that 85% of high-value transactions were directly linked to scams or involved transfers to jurisdictions considered high-risk for money laundering.
Earlier this year, AUSTRAC implemented limitations on crypto ATM transactions, including caps on cash deposits and withdrawals, alongside enhanced due diligence requirements for operators. The newly proposed measures would further enable the agency to take decisive actions against products and services deemed high-risk.
The proposed amendments align with Australia’s broader efforts to combat financial crime in the evolving digital asset landscape. Other jurisdictions, such as New Zealand, are taking even stricter steps, with discussions underway to ban crypto ATMs entirely as part of their anti-money laundering reforms.
As the regulatory framework develops, AUSTRAC’s expanded powers are expected to play a key role in addressing vulnerabilities linked to cryptocurrencies, while balancing innovation and security in Australia’s financial ecosystem.
