Australia is considering new regulations that could significantly restrict access to cryptocurrency ATMs, a move aimed at combating illicit financial activities. The proposed legislation grants the chief executive of the Australian Transaction Reports and Analysis Centre (AUSTRAC) enhanced powers to block high-risk financial products, with a particular focus on crypto transactions and the operation of these ubiquitous machines.
This regulatory shift comes as cryptocurrency ATMs in Australia are estimated to facilitate over $275 million in transactions annually, presenting a significant challenge for anti-money laundering efforts. Minister for Home Affairs, Tony Burke, has spearheaded the initiative, which would empower the AUSTRAC CEO to curtail or outright prohibit services deemed to pose a substantial risk of money laundering.
AUSTRAC CEO Brendan Thomas has publicly endorsed the proposal, emphasizing its necessity for a more agile response to emerging threats. He highlighted the persistent and unacceptable level of money laundering risk observed through certain channels, noting the increasing integration of cryptocurrency transactions into illicit schemes. Thomas specifically pointed to crypto ATMs as particularly concerning due to their capacity for rapid and near-anonymous fund transfers, amplifying the associated risks.
Data from an AUSTRAC working group reveals a dramatic expansion of crypto ATM presence in Australia, growing from a mere 23 machines to approximately 2,000 over a six-year period. These machines process around 150,000 transactions each year, accumulating a substantial value. Crucially, the data indicates that 85% of active users are either victims of fraud or individuals coerced into making transfers, underscoring the vulnerability of the user base.
Further analysis by AUSTRAC identifies individuals aged 50 to 70 as the most active users of these devices, accounting for nearly 72% of transactions. This demographic is considered particularly susceptible to financial exploitation. If enacted, the proposed legislative changes would equip AUSTRAC with the authority to impose limitations on the use of such ATMs or implement outright bans. This development follows the Australian government’s announcement of a broader bill to regulate the cryptocurrency industry in September 2025.
Blockchain developer and writer, Daniel combines hands-on coding experience with accessible storytelling. He holds multiple blockchain certifications and authors technical explainers, protocol deep-dives, and developer tutorials to help readers navigate the intersection of code and finance.