Australia Tightens Crypto ATM Regulations to Combat Illicit Activities
Australia is set to grant its financial intelligence agency, AUSTRAC, new powers to regulate the country’s burgeoning crypto ATM market. Home Minister Tony Burke highlighted the rapid growth of these machines, which have become a global hotspot for cash-to-crypto transactions.
Burke, speaking at the National Press Club in Canberra, noted that Australia’s crypto ATM numbers have skyrocketed from 23 six years ago to over 2,000 today. This growth has made the country the third-largest crypto ATM market globally. However, these machines are increasingly linked to illegal activities like money laundering, scams, and even child exploitation.
According to Burke, AUSTRAC’s analysis shows that 85% of the top users of crypto ATMs are involved in scams or money mules. this alarming statistic underscores the need for stricter regulations. AUSTRAC has already imposed a 5,000 Australian dollar cash limit and stricter compliance rules for operators.
New regulations are being drafted to give AUSTRAC more authority over “high-risk products” like crypto ATMs. while the agency hasn’t announced a complete ban, it aims to curb illicit activities. AUSTRAC CEO Brendan Thomas stated that these measures will protect individuals from scams and businesses from criminal exploitation.
Despite the potential risks, crypto ATMs themselves are not inherently malicious. Scammers often use them in fraud schemes because blockchain transactions are hard to trace. Australia’s move reflects a growing global trend of regulating crypto ATMs to prevent misuse.
