TLDR
- The Australian government will grant AUSTRAC new powers to regulate crypto ATMs.
- Home Affairs Minister Tony Burke announced that crypto ATMs are considered high-risk financial products.
- Burke confirmed that AUSTRAC will have the authority to restrict or prohibit these machines if necessary.
- The number of crypto ATMs in Australia has grown from 23 to nearly 2,000 in six years.
- AUSTRAC has linked crypto ATMs to money laundering, drug trafficking, and child exploitation.
Australia will expand its regulatory powers to combat the illicit use of cryptocurrency ATMs, following a rise in money laundering activities. The government plans to give AUSTRAC new authority to restrict or prohibit high-risk financial products. This move aims to reduce financial crime and protect national security.
AUSTRAC to Gain Control Over Crypto ATMs
Home Affairs Minister Tony Burke has proposed legislation to empower AUSTRAC to regulate crypto ATMs more strictly. Speaking at the National Press Club, Burke stated that these machines pose a high risk for illegal transactions. “Crypto ATMs are a high-risk product,” Burke said, supporting the need for tighter regulation.
AUSTRAC will receive power to restrict or ban financial tools it identifies as risky, including crypto ATMs. According to Burke, crypto ATMs facilitate fast and anonymous cash-to-crypto conversions, making it challenging to track illicit funds. He emphasized that criminals are increasingly using crypto ATMs for money laundering and funding illegal activities.
Burke added that not every crypto ATM user commits crimes, but the risk remains too great. Authorities struggle to trace cash converted into cryptocurrency. Therefore, AUSTRAC needs extended powers to respond quickly and prevent misuse.
Rapid Growth and Global Concerns
Crypto ATMs in Australia have surged from 23 units six years ago to nearly 2,000 today. This rapid growth makes Australia the third-highest country globally in terms of crypto ATM density, Burke explained. He warned that such machines often link to fraud, drug trades, and child exploitation.
AUSTRAC stated that the proposed powers would help reduce risks associated with high-risk products, especially crypto ATMs. Brendan Thomas, AUSTRAC CEO, said, “Crypto ATMs allow anonymous global transfers, increasing the risks of laundering and serious crimes.” This integration into laundering schemes has drawn increased attention from regulators.
Australia’s move aligns with broader global actions against crypto ATMs. Countries like New Zealand and the U.S. have already introduced similar measures. These efforts reflect a growing international concern over the misuse of crypto ATMs in financial crime.
International Reactions and Regulatory Trends
New Zealand announced a ban on crypto ATMs in July as part of its anti-money laundering strategy. In August, Illinois introduced a law requiring crypto ATM operators to register and follow anti-fraud guidelines. The U.S. state also mandated live support and strict compliance programs.
These actions highlight a trend toward stricter oversight of crypto ATMs worldwide. Governments are reacting to rising misuse by strengthening regulatory tools. Australia’s proposal demonstrates its intention to stay ahead of evolving financial crime methods.
