Australia Moves to Grant AUSTRAC New Powers to Regulate Crypto ATMs Amid Rising Scam Concerns

Australia’s Minister for Home Affairs, Tony Burke, has announced plans to expand the authority of the country’s anti-money laundering watchdog, the Australian Transaction Reports and Analysis Centre (AUSTRAC), to better regulate cryptocurrency ATMs and other high-risk financial products. The proposed measures would allow AUSTRAC to restrict or ban services considered vulnerable to criminal misuse, with further details on the legislative amendments expected to be released soon.

Crypto ATMs, which enable users to purchase digital assets using cash or bank cards, have rapidly increased across Australia. According to Coin ATM Radar, the country currently hosts around 2,100 crypto terminals, compared to just 23 six years ago. However, authorities warn that these machines are increasingly being exploited for illegal activities, including money laundering and scams.

AUSTRAC’s CEO, Brendan Thomas, noted the sharp rise in crypto ATM usage, emphasizing the need for stronger oversight. “Three years ago, there were 200 machines in operation — now that number has soared to over 2,000,” he said. Thomas added that the watchdog’s analysis of 90 of the most active crypto ATM users revealed that 85% were linked to fraudulent transactions or the transfer of funds to high-risk jurisdictions.

Earlier this year, AUSTRAC introduced new regulations for crypto ATM operators, limiting cash deposits and withdrawals while mandating enhanced due diligence measures. These efforts form part of a broader initiative to curb financial crime and protect Australians from crypto-related scams.

As Australia continues tightening its crypto regulations, the proposed powers for AUSTRAC reflect growing global concerns about the misuse of digital assets. The government’s move signals a clear message: financial innovation must not come at the expense of transparency and security.