In brief
- Burke revealed Australia’s crypto ATM count has exploded from 23 machines six years ago to over 2,000 today, with 85% of top user transactions linked to scams or money mules.
- The proposed legislation would grant AUSTRAC the authority to restrict or prohibit “high-risk products,” with crypto ATMs specifically targeted.
- The move follows months of regulatory pressure, including AUSTRAC revoking one operator’s license in June and imposing $5,000 transaction caps across the sector.
Australia’s Home Affairs Minister Tony Burke announced new rules on Wednesday to crack down on crypto ATMs, calling the machines a “high-risk product” linked to money laundering, scams, and child exploitation.
The announcement was part of broader sweeping new powers to combat money laundering, terrorism financing, and crime risks.
“Six years ago, Australia had 23 of them. Three years ago, Australia had 200 of them. Now, we have 2,000 of them. It’s grown and grown rapidly,” Burke said during an address to the National Press Club in Canberra, as cited by ABC News.
The home affairs minister said purchasing crypto with cash makes it difficult to trace, with AUSTRAC linking crypto ATMs to money laundering, scams, fraud, illicit substances, and child exploitation.
“When they looked at the top users, the top users who are putting the most money into crypto ATMs, 85% of the money going through for the top users involved scams or money mules,” he said.
The announcement marks the culmination of mounting regulatory pressure on an industry that authorities say has grown unchecked while facilitating financial crime.
Burke said legislation is being drafted to give AUSTRAC the power to restrict or prohibit “high-risk products,” including crypto ATMs, with the minister expected to introduce it to Parliament in the coming months.
The minister declined to specify whether AUSTRAC would ban the machines outright, saying such declarations could result in a “legal challenge.”
“The capacity for AUSTRAC to make a call on it will be given by legislation that I will introduce,” Burke added.
Risk in perspective
“I don’t believe crypto ATMs represent a significant risk in comparison to other established channels such as banks, casinos, or remittance services (particularly as most crypto ATMs already require some level of KYC verification),” James Volpe, founding director of Melbourne-based Web3 education firm uCubed, told Decrypt.
He said the ATMs warrant attention despite not being “among the most prominent sources of financial crime risk,” adding how AUSTRAC appears focused on “targeting criminal misuse rather than stifling innovation.”
The regulatory crackdown began gathering momentum in March when AUSTRAC placed crypto ATM operators “on notice” after a taskforce formed in late 2023 uncovered “worrying trends and indicators of suspicious activity” tied to the machines.
By June, the agency had refused to renew registration for crypto ATM operator Harro’s Empires and imposed transaction caps of $5,000 alongside enhanced customer due diligence requirements across the sector.
Volpe said there is room for “smarter collaboration” between AUSTRAC, law enforcement, and ATM providers.
He suggested automated systems could “monitor transaction patterns and flag only high-risk or suspicious activity for further review,” which would enable “targeted enforcement while maintaining users’ right to privacy.”
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