Australia's financial intelligence agency, AUSTRAC, is set to receive sweeping new powers to restrict or ban entire categories of cryptocurrency services, including ATMs, in response to a surge in scam activity. The proposed legislation, backed by Home Affairs Minister Tony Burke, would allow AUSTRAC's CEO to act swiftly against high-risk products or delivery channels without lengthy regulatory procedures.
According to AUSTRAC data, cryptocurrency ATMs in Australia process approximately 150,000 transactions annually, valued at around $275 million. Alarmingly, 85% of high-volume transactions have been linked to fraudulent activity or "money mule" schemes, where victims are tricked into transferring illicit funds abroad. AUSTRAC CEO Brendan Thomas stated, "We're seeing misuse on a scale that demands stronger action. This framework would let us act before the harm spreads."
The number of crypto ATMs in Australia has skyrocketed from just 23 machines six years ago to over 2,000 today, making it the world's third-largest market behind the U.S. and Canada. Authorities highlighted that Australians aged 50 to 70 account for nearly 72% of total crypto ATM transaction value, making them the most frequent and vulnerable users, often targeted by sophisticated online fraudsters.
If passed, the amendment would empower AUSTRAC to suspend or outlaw specific crypto services when risks become "unacceptable." Current measures include a cash deposit cap of AUD $5,000 and mandatory warning notices at ATMs. Industry groups have responded cautiously, arguing that broader bans could hinder innovation, but AUSTRAC insists the focus is on crime prevention and protecting the community.
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