Quick Breakdown
- Australia to expand AUSTRAC’s powers to regulate crypto ATMs amid growing scam concerns.
- Over 2,000 machines now make Australia the third-largest crypto ATM market globally.
- New transaction limits and stricter compliance rules aim to curb fraud and illicit activities.
Australia to empower AUSTRAC against crypto ATM misuse
Australia is set to give its financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), expanded authority to monitor and regulate the nation’s booming crypto ATM market — now the third-largest in the world.
New draft regulations will enable AUSTRAC to oversee so-called “high-risk products” like crypto ATMs, which have been increasingly tied to money laundering, fraud, drug trafficking, and child exploitation, according to Home Affairs Minister Tony Burke.
Speaking at the National Press Club in Canberra, Burke described the rapid growth of crypto kiosks as “alarming,” noting that the number of machines has skyrocketed from 23 six years ago to 2,000 today, making Australia the regional leader in crypto ATM installations.
Rising scams fuel regulatory crackdown
Authorities say the surge in crypto ATMs has coincided with a spike in fraud and scams targeting unsuspecting victims — particularly seniors. In one case earlier this year, 15 Tasmanian residents collectively lost $2.5 million after being duped into transferring money via crypto ATMs.
While the machines themselves aren’t inherently malicious, criminals exploit them to move illicit funds due to the anonymity of blockchain transactions. Scammers often guide victims to deposit cash into these kiosks to convert fiat into crypto, effectively erasing the transaction trail.
Burke pointed to AUSTRAC’s internal data showing that among the largest ATM users, 85% of transaction volume was connected to scams or money mule activities.
AUSTRAC enforces stricter rules on operators
Although Burke stopped short of confirming a nationwide ban, AUSTRAC has already taken significant steps to rein in the sector. In March 2025, the agency warned operators about non-compliance with anti-money laundering (AML) laws and has since intensified enforcement efforts.
Operators must now limit cash deposits to 5,000 Australian dollars per transaction, conduct enhanced customer verification, and display anti-scam warning notices at all machine locations.
“These measures are designed to protect both individuals and legitimate businesses from criminal misuse,” said AUSTRAC CEO Brendan Thomas, emphasizing that the new powers will strengthen the agency’s ability to safeguard Australia’s financial ecosystem.
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