Australia to Grant AUSTRAC New Powers to Restrict or Ban Crypto ATMs

Highlights:

• AUSTRAC will gain new powers to restrict or ban high-risk financial products in Australia.
• Crypto ATMs in Australia have grown rapidly, and authorities link them to scams and illicit activity.
• Industry experts have called for collaboration to monitor suspicious activity without affecting legitimate users.

The Australian Minister of Home Affairs, Tony Burke, announced a draft legislation that will allow AUSTRAC to limit or prohibit high-risk products. The shift is aimed at new technologies that the law enforcers find hard to control. Burke pointed out that crypto ATMs are included in this category because it is difficult to trace illegal action. He said the government will not force a ban but will provide AUSTRAC discretion to act. The legislation is part of broader efforts to fight money laundering, scams, and criminal financing.

JUST IN: Australia’s Home Affairs Minister announces new sweeping powers aimed at curbing crypto ATMs to combat money laundering and illicit activities, tightening regulations on $crypto transactions and ATM operations nationwide.

— Bitcoin Dominance (@MoneyHustl41075) October 16, 2025

During a speech at the National Press Club, Burke emphasized that authorities face limited success in tracking funds through crypto ATMs. He noted that while most users are legitimate, the proportion of problematic transactions remains significant. He added that giving AUSTRAC these powers will allow flexible oversight of new financial technologies.

The minister stressed that the agency must decide when to regulate or restrict devices to manage risks effectively. He also highlighted that AUSTRAC will focus on high-risk products without unnecessary interference in other areas.

Authorities have linked cash-based cryptocurrency transactions to scams, fraud, and child exploitation. Burke reported that top users depositing large sums often engage in suspicious or illicit activities. He said new powers will let AUSTRAC respond quickly when such high-risk patterns emerge. The draft legislation is expected to be introduced in Parliament in the coming months.

Rapid Growth of Crypto ATMs Raises Money Laundering Concerns

The number of crypto ATMs in Australia has increased dramatically over the past years. There were only 23 machines in 2017 in Australia, but by 2022, the figure had soared to more than 2,000. The nation has become the third-largest crypto ATM hub in the world. Localcoin, Coinflip, and Bitcoin Depot control over half of the network and operate most of these machines. This fast growth has attracted concerns about money laundering and other illegal activities.

AUSTRAC has already made efforts to restrict risks. In June, it placed transaction restrictions and new operating guidelines on crypto ATM operators. Some operators have been denied registration after being reported as suspicious. Authorities have linked top crypto ATM users to scams, fraud, and illegal substance transactions. Burke highlighted that most high-volume transactions involve problematic accounts or money mules.

Australia tightens regulations on crypto ATMs as authorities warn about increasing scams. Scam losses via crypto ATMs in Australia exceed 3.1 million Australian dollars in 12 months, according to Australian Federal Police. #cryptonews #Australia #cryptoATM#Crypto #Bitcoin #News pic.twitter.com/lisRXVRr34

— FUND THE FUTURE (@ftf_vc) June 3, 2025

Industry participants argue that crypto ATMs include security measures. Coinflip, for instance, uses KYC verification, blockchain analytics, cameras, and real-time scam alerts. According to the company, the measures are meant to minimize criminal activities without excluding genuine users who will conduct business securely. The rise in crypto ATMs indicates a growing demand, while the number of traditional bank ATMs is on a downward trend in Australia. Burke stressed that control was not to suppress technological advancement through misuse.

Operators Adapt to New Oversight Rules

Crypto ATM operators are modifying their systems to align with the proposed powers of AUSTRAC. They have enhanced KYC procedures and introduced monitoring tools. A lot of machines have cameras and blockchain analytics to identify suspicious activity. The goal of operators is to minimize criminal abuse and to make services available to authorized users.

The industry is also looking into automated alerts to spot suspicious patterns promptly. Other operators provide real-time scam warnings to alert against fraud even before the transaction is made. These actions indicate that the industry is ready to collaborate with governments. Operators of the crypto ATMs underline that constant communication with AUSTRAC will contribute to the successful implementation of rules. They are still looking at the balance between compliance and easy user experience.