Australia is preparing to tighten its grip on cryptocurrency ATMs as part of a broader push to combat money laundering and other financial crimes.
Key Takeaways
- Australia plans to give AUSTRAC new authority to restrict or ban high-risk financial products, including crypto ATMs.
- Crypto ATM use in Australia has surged, growing from 23 to nearly 2,000 units in six years.
- Authorities link crypto ATMs to serious crimes such as money laundering, drug trafficking, and child exploitation.
- Most victims of crypto ATM scams are older Australians, with people aged 50 to 70 making up 72 percent of transaction value.
What Happened?
The Australian government is proposing legislation that would grant its financial intelligence agency, AUSTRAC, expanded powers to regulate and potentially prohibit cryptocurrency ATMs. The move comes amid rising concerns that these machines are being used for anonymous, untraceable transactions connected to fraud, money laundering, and exploitation.
Australia 🇦🇺 next to ban Crypto ATMs
— The Great Martis (@great_martis) October 16, 2025
Adoption to Abandonment in just a couple of years.
Won’t be long. pic.twitter.com/clcVQIhMdx
AUSTRAC to Regulate Crypto ATMs Under Expanded AML Powers
Home Affairs Minister Tony Burke announced the proposal during a speech at the National Press Club, highlighting crypto ATMs as a major threat. He described them as “a high-risk product” and said AUSTRAC needs the flexibility to “restrict, or if it decides to, prohibit” such tools to protect national security and financial systems.
Burke clarified that while not every crypto ATM user is doing something wrong, the risk of misuse is too large to ignore. These machines allow for cash-to-crypto conversions that are nearly impossible to trace. That makes them a prime target for criminals looking to move money without detection.
AUSTRAC CEO Brendan Thomas supported the proposal, explaining that crypto ATMs allow users to “turn cash into digital currency that can be sent instantly and virtually anonymously across the globe.” He emphasized that this integration into laundering methods increases the urgency for regulation.
Rapid Growth and Rising Misuse
The number of crypto ATMs in Australia has exploded from just 23 machines six years ago to nearly 2,000 today, placing Australia third globally in terms of machine density. According to AUSTRAC’s internal estimates, these ATMs process around 150,000 transactions a year, moving approximately $275 million.
A joint review by AUSTRAC and Australian police found that 85 percent of frequent crypto ATM users were either scam victims or unknowingly helping criminals. The data showed that older Australians aged 50 to 70 accounted for nearly 72 percent of the total transaction value, making them the most vulnerable group.
Global Trend Toward Stricter Oversight
Australia’s actions align with international moves to rein in crypto ATMs. In July, New Zealand banned crypto ATMs as part of its anti-money laundering reforms. A month later, Illinois in the U.S. introduced legislation requiring crypto ATM operators to register with state regulators and follow strict compliance programs.
These international steps reflect a growing consensus that crypto ATMs pose too high a risk when left unregulated. Burke mentioned that Australia wants to stay ahead of these evolving threats by equipping AUSTRAC with tools to act swiftly.
Although a full ban hasn’t been confirmed, AUSTRAC has already revoked some operator licenses and implemented a $5,000 cap per transaction to reduce abuse. The new legislation would reinforce these efforts with stronger legal backing.
CoinLaw’s Takeaway
I’ve been following crypto regulation for a while, and this move from Australia feels like a necessary wake-up call. In my experience, crypto ATMs have always been a double-edged sword, offering convenience, but also anonymity that bad actors love. It’s not about banning innovation, it’s about putting guardrails in place. When 85 percent of users are either victims or part of criminal schemes without even knowing it, that’s not a small issue. It’s time to make these systems safer for everyone, especially the vulnerable who often don’t even realize they’re at risk.
