Australia’s Home Secretary Announces Sweeping Powers to Curb Crypto ATMs

Australia’s Home Affairs Minister Tony Burke announced new rules on Wednesday to tackle crypto ATMs, calling the machines a “high-risk product” linked to money laundering, fraud and child exploitation.

The announcement was part of a broader one to offer new powers combating money laundering, terrorist financing and crime risks.

“Six years ago Australia had 23. Three years ago Australia had 200. Now we have 2,000. It’s grown rapidly,” Burke said during a speech at the National Press Club in Canberra, as quoted by ABC News.

The Home Secretary said buying crypto with cash makes it difficult to trace, with AUSTRAC linking crypto ATMs to money laundering, scams, fraud, illegal substances and child exploitation.

“When they looked at the top users, the top users who put the most money into crypto ATMs, 85% of the money going through the top users was scams or money mules,” he said.

The announcement marks the culmination of mounting regulatory pressure on a sector that authorities say has grown unchecked while facilitating financial crime.

Burke said legislation is being drafted to give AUSTRAC the power to restrict or ban “high-risk products”, including crypto ATMs. The minister expects to introduce this to parliament in the coming months.

The minister declined to specify whether AUSTRAC would ban the machines completely, saying such statements could result in a “legal challenge”.

“The opportunity for AUSTRAC to invoke it will be given by the legislation I will introduce,” Burke added.

Risk in perspective

“I don’t believe crypto ATMs pose a significant risk compared to other established channels such as banks, casinos or money transfer services (especially as most crypto ATMs already require some level of KYC verification),” James Volpe, founder and director of Melbourne-based Web3 education company uCubed, told Decrypt.

He said the ATMs deserve attention despite not being “among the most prominent sources of financial crime risk”, adding that AUSTRAC appears to be focusing on “tackling criminal abuse rather than stifling innovation.”

The regulators’ crackdown began to gain momentum in March when AUSTRAC listed crypto ATM operators “on notice” after a task force formed in late 2023 revealed “concerning trends and indicators of suspicious activity” associated with the machines.

In June, the agency had declined to renew registration for crypto ATM operator Harro’s Empires imposed transaction limits of $5,000, in addition to enhanced customer survey requirements across the industry.

Volpe said there is room for “smarter collaboration” between AUSTRAC, law enforcement agencies and ATMs.

He suggested that automated systems could “monitor transaction patterns and flag only risky or suspicious activity for further review,” which would “enable targeted enforcement while preserving users’ right to privacy.”