Australia’s Minister for Home Affairs, Tony Burke, will seek to introduce legislation giving the nation’s financial intelligence agency, AUSTRAC, new powers to restrict or ban products and services considered high‑risk for money laundering, terrorism financing or other criminal activity, including cryptocurrency ATMs.
Under the proposed Anti‑Money Laundering and Counter‑Terrorism Financing Amendment, the AUSTRAC CEO would gain authority to prohibit or impose conditions on specific products, services or delivery channels deemed vulnerable to misuse.
“We are still seeing unacceptable money‑laundering risks across some channels,” AUSTRAC CEO Brendan Thomas said. “Having a power like this enables the CEO to adapt to the evolving risk environment in more responsive ways.”
Crypto ATMs identified as “high‑risk”
Crypto ATMs, machines allowing users to convert cash into digital currency, have multiplied rapidly in Australia. Thomas noted that there were only 23 machines six years ago, 200 machines three years ago, and now around 2,000 nationwide.
An AUSTRAC Crypto Taskforce estimates that nearly 150,000 transactions, worth about A$275 million annually, occur through these devices. Analysis of the top 90 users found 85 per cent were scam victims or money mules. People aged 50 to 70 years now account for more than 70 per cent of transaction value, and are among the most frequent scam targets.
Burke told the National Press Club that crypto ATMs pose “significant money‑laundering, terrorism‑financing and serious crime risks,” adding that Australia hosts the third‑largest number of crypto ATMs globally.
“I’m not pretending that everyone who uses a crypto ATM is a problem, but proportionately what’s happening is a significant concern,” he said.
Industry and banking sector reaction
The Australian Banking Association (ABA) welcomed the announcement. CEO Simon Birmingham said the move would “help close off a channel that criminals exploit to launder money and funnel scam proceeds.”
He added that allowing banks enhanced access to Visa Entitlement Verification Online (VEVO) data would further help stop money‑mule activity, in which criminals take over legitimate accounts to hide illicit funds.
AUSTRAC’s enforcement and next steps
AUSTRAC has intensified scrutiny of crypto ATM operators since establishing its dedicated taskforce in 2023. Earlier this year, it refused to renew one operator’s registration, saw another withdraw voluntarily, and introduced transaction caps and minimum compliance standards for machines.
Crypto ATM providers argue the sector already follows Know‑Your‑Customer (KYC) and anti‑fraud protocols, including identity verification and blockchain analytics. One major operator said that its machines “have cameras and real‑time scam warnings” designed to deter misuse.
Burke stressed the forthcoming powers would be optional and subject to AUSTRAC discretion, rather than an automatic ban.
“The legislation will give AUSTRAC the ability to restrict or prohibit high‑risk products when needed,” he said. “It’s about equipping regulators to act as technology evolves.”
If passed by Parliament, AUSTRAC says it is ready to implement the new powers immediately.
Roman Zaika
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