Australia’s Home Affairs Minister, Tony Burke, has announced a sweeping set of new regulatory powers designed to curb the misuse of cryptocurrency ATMs ...a sector that authorities say has become a hotbed for scams and money laundering.
Under the proposal, the Australian Transaction Reports and Analysis Centre (AUSTRAC) will be given enhanced authority to restrict or outright ban crypto products and services considered “high risk.” This would include crypto ATMs, which have been increasingly used by criminal networks to launder illicit funds through digital assets.
Burke said the move follows a spike in crypto-related fraud cases, highlighting a recent incident in which a 77-year-old woman lost AU$430,000 after being manipulated into transferring money via a crypto ATM. “These are not isolated cases,” he noted, calling such machines “a high-risk product that needs stronger oversight.”
The reforms will also grant banks new access to visa and immigration data to help identify so-called “money mule” accounts — often operated by international students or temporary visa holders who unknowingly allow their bank details to be used for criminal activity.
Crypto ATMs have grown rapidly across Australia, rising from a few dozen just years ago to over 1,800 machines nationwide. Authorities warn that this expansion has outpaced the country’s regulatory framework, giving scammers and organized crime groups an easy on-ramp for laundering funds.
The upcoming legislation will amend the Anti-Money Laundering and Counter-Terrorism Financing Act, tightening compliance obligations for both ATM operators and digital-asset service providers.
While some in the crypto community worry this could stifle innovation, regulators argue that the measures are crucial to restore trust. “The goal is not to stop innovation, but to stop exploitation,” Burke said.
Analysts believe the crackdown could trigger similar actions in other countries, especially as governments worldwide move toward stricter oversight of decentralized financial infrastructure.
