Australia Proposes New AUSTRAC Powers to Curb High-Risk Crypto ATMs
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Australia is pushing for a new legal framework to empower its financial intelligence unit, the Australian Transaction Reports and Analysis Center (AUSTRAC), to restrict or ban high-risk crypto products, including cryptocurrency ATMs.
The proposal will address growing concerns over the use of these machines for financial crime. Home Affairs Minister Tony Burke revealed details about the forthcoming proposal during an address at the National Press Club in Canberra.
https://www.youtube.com/watch?v=zERkATAt8lg
Rising Crypto ATM Numbers Coincide with Elevated Crime Risks
The Home Affairs Minister also touched on a worrying trend for Australian regulators, which is the rapid growth being experienced in the crypto ATMs sector. According to Minister Burke, the sector has witnessed an increase from 23 machines six years ago to approximately 2,000 today.
He also cited an AUSTRAC review indicating that 85% of funds processed by high-volume users were connected to scams or money-mule operations.
“Australia has the highest number of CATMs in the region, and the third highest in the world,” Burke stated, linking the platforms to “significant money laundering, terrorism financing, and serious crime risks.”
The warning follows months of enforcement actions.
In March, AUSTRAC placed ATM operators “on notice” after uncovering suspicious transactions. By June, it had stripped one operator of its license and capped transactions at $5,000 while ordering stricter ID checks.
According to data from CoinATMRadar, Australia now ranks third globally for crypto ATM installations. The country is home to approximately 2,030 machines, trailing only the United States and Canada.
Major operators, such as Localcoin, Coinflip, and Bitcoin Depot, manage a significant portion of these kiosks, which they argue are already being run with strong safeguards.
Coinflip, for instance, reports employing strong security and anti-money laundering safeguards, including government ID verification, surveillance systems, blockchain analytics, and real-time scam alerts in its bid to mitigate illicit activity.
Nonetheless, industry observers suggest the most effective approach involves collaboration between regulators, law enforcement, and providers to identify high-risk activity rather than implementing sweeping bans.
Regulatory Crossroads: Enforcement and Endorsement in Digital Assets
The Australian government’s approach to crypto-related crime has long been firm and uncompromising.
In a recent high-profile case, the Australian police broke up a $124 million crypto-laundering ring operating out of Queensland, marking one of the country’s biggest financial-crime busts. The Australian Federal Police, with support from AUSTRAC and the Taxation Office, arrested four suspects and froze $13.7 million in cash and assets.
Investigators say the operation disguised profits from organized crime as business income before converting them into cryptocurrency to hide their origin.
Elsewhere, countries are taking a more open approach. Sweden is studying a proposal to build a national Bitcoin reserve, using confiscated coins instead of taxpayer funds, framing it as a budget-neutral way to modernize state holdings.
South Korea has lifted its long-standing restrictions on crypto businesses, now recognizing them as venture companies eligible for government-backed funding and tax incentives—a clear signal that some governments see crypto not as a threat, but as part of their digital future.
