Australia's Home Affairs Minister, Tony Burke, has announced a major regulatory move to crack down on crypto ATMs, labeling them a "high-risk product" associated with money laundering, scams, and child exploitation. This is part of a broader package of new powers aimed at combating financial crime.
Burke highlighted the rapid growth of the machines, stating their number has exploded from just 23 six years ago to 2,000 today. The primary concern is that purchasing crypto with cash via these machines makes transactions difficult to trace.
The financial intelligence agency, AUSTRAC, found compelling evidence linking these ATMs to criminal activity. Burke cited a statistic that among top users, 85% of the money involved scams or "money mules."
The government is drafting new legislation to grant AUSTRAC the power to restrict or outright prohibit "high-risk products," including crypto ATMs. While the Minister declined to state whether the machines would be banned immediately, he confirmed he will introduce the necessary legislation to Parliament in the coming months, allowing AUSTRAC to make that ultimate decision.
The announcement culminates mounting pressure that began in March when AUSTRAC first put operators "on notice" over money laundering concerns, followed by transaction caps and enhanced due diligence in June.
However, some industry experts, like James Volpe of uCubed, argue that crypto ATMs "do not represent a significant risk" compared to established channels like banks and casinos, particularly since most ATMs already require some Know Your Customer (KYC) verification. Volpe suggested that "smarter collaboration" between AUSTRAC and providers, using automated monitoring systems to flag only high-risk activity, would be a more balanced approach.
Separately, the Australian Securities and Investments Commission (ASIC) has moved in the opposite direction for stablecoins, granting regulatory relief to intermediaries to ease the distribution of crypto issued by licensed Australian providers, which experts have called a "pragmatic" move.
October 2025, Cryptoniteuae