Australia Moves to Regulate Crypto ATMs Following 85% Illicit Use Findings

Australia is preparing to tighten regulations on cryptocurrency ATMs after a report from the Australian Transaction Reports and Analysis Centre (AUSTRAC) revealed that 85% of large-scale user transactions are linked to illicit activities, including fraud, money laundering, and child exploitation. Home Affairs Minister Tony Burke announced that new legislation will grant AUSTRAC the authority to restrict or even ban these "high-risk" products, marking one of the strongest government responses to crypto-enabled financial crimes to date.

The number of crypto ATMs in Australia has exploded over the past six years, growing from just 23 machines to over 2,000, as noted by AUSTRAC CEO Brendan Thomas. Burke emphasized that these devices have become a "preferred tool for organized crime and online scammers," and the upcoming bill, expected to be introduced to Parliament in the coming months, aims to balance innovation with stronger oversight. Potential measures include tighter Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, as well as a licensing framework for operators.

This move aligns with a global trend, as governments in the United States, Canada, and the United Kingdom have also increased scrutiny of crypto ATMs due to similar concerns. For instance, the U.S. Financial Crimes Enforcement Network (FinCEN) has demanded enhanced identity verification, while the UK has shut down unregistered machines. Australia's decision, anticipated later this year, could influence neighboring markets like Singapore and New Zealand, which are already reviewing their own crypto ATM rules.