Australia’s Government Proposes New Powers for AUSTRAC to Restrict Crypto ATMs
Australia is set to broaden the powers of the Australian Transaction Reports and Analysis Centre (AUSTRAC) to address rising misuse of cryptocurrency ATMs. According to Home Affairs Minister Tony Burke, the government plans to give AUSTRAC new authority to oversee and limit high-risk financial channels linked to digital assets.
The proposal specifically targets crypto ATMs, which have increasingly been connected to scams and money laundering activities. By enabling AUSTRAC to restrict or prohibit such services, the government aims to strengthen oversight of digital currency transactions and reduce avenues for financial crime. This move forms part of a wider national effort to modernize Australia’s anti-money laundering and counter-terrorism financing framework.
Why crypto ATMs are in the frame
AUSTRAC said analysis of a sample of 90 of the most prolific crypto-ATM users found 85% of funds were linked to scams or money-mule behavior. The agency argues the machines make it easy to convert cash into digital assets that can be moved quickly and pseudonymously, complicating recovery and enforcement. Industry trackers estimate Australia now has around 2,000–2,100 terminals, up sharply from a few dozen in 2019, underscoring the growth regulators are responding to. AUSTRAC+2CoinDesk+2
What the proposal would change
While the government has not yet published clause-by-clause legislative language, officials say the reform would give AUSTRAC a flexible “restrict or prohibit” tool for high-risk products, services or delivery channels. Crypto ATMs were cited explicitly as an example. Additional details on scope, thresholds and due-process safeguards are expected in the coming period.
Market scale and risk profile
Public data suggest the network processes significant volumes, with prior AUSTRAC commentary indicating hundreds of millions of dollars annually, and user cohorts skewing older groups that are frequently targeted by scammers. Researchers and media reports also highlight the sector’s rapid expansion and the tension between access and abuse risk.
Government and industry reaction
The announcement follows months of scrutiny from regulators and consumer groups. Some stakeholders have argued for tighter controls or outright bans, while others support calibrated rules to preserve legitimate use. The government says any new AUSTRAC crypto ATM powers will be designed to address demonstrable harms without over-capturing low-risk activity.
Context & Analysis
The proposed AUSTRAC crypto ATM powers mirror broader global moves to give financial-intelligence units nimble tools against emerging typologies. Flexibility can help target demonstrably high-risk channels, but implementation details such as transparency, review mechanisms, and proportional thresholds will determine whether the rules effectively deter abuse without unduly constraining legitimate retail access to digital assets.
Conclusion
The Australian government’s move to grant AUSTRAC greater authority over high-risk financial products represents a significant advancement in strengthening the country’s anti-money laundering and counter-terrorism financing framework. The initiative reflects a growing commitment to regulate emerging digital finance channels more effectively.
Once the legislative framework is finalized, both crypto ATM operators and users will be required to adapt to stricter controls and monitoring measures. These enhanced oversight mechanisms aim to minimize scams, prevent money-mule operations, and ensure that cryptocurrency transactions operate within a more transparent and secure regulatory environment.
FAQs
Q : What are the proposed AUSTRAC crypto ATM powers?
A : They would allow AUSTRAC to restrict or prohibit high-risk products and delivery channels, with crypto ATMs identified as an example.
Q : Why are crypto ATMs considered high risk?
A : AUSTRAC found 85% of funds from a sample of top users were tied to scams or mule activity.
Q : How many crypto ATMs are in Australia?
A : Roughly 2,000–2,100, up from a few dozen six years ago.
Q : Will all crypto ATMs be banned?
A : Not necessarily; the proposal enables targeted restrictions or prohibitions on high-risk products. Final measures will depend on the legislative detail.
Q : Who uses crypto ATMs most?
A : AUSTRAC has noted heavy usage by older Australians and significant links to scam victimization.
Q : When will the changes take effect?
A : Timing is unclear; the government says further details will be provided in due course.
Q : How can I protect myself when using a crypto ATM?
A : Verify payees, avoid addresses from strangers, use reputable machines, and seek advice before large transactions.
Facts
Event
Government proposes new powers for AUSTRAC to restrict or prohibit high-risk products, citing crypto ATMsDate/Time
2025-10-16T14:33:00+05:00Entities
Australian Government (Home Affairs Ministry); AUSTRAC (Australian Transaction Reports and Analysis Centre); Tony Burke (Home Affairs Minister)Figures
~2,000–2,100 crypto ATMs in Australia; 85% of funds from a sample of top users linked to scams/mules (AUSTRAC)Quotes
“In a sample of 90 of the most prolific crypto ATM users… 85 per cent were scam victims or money mules.” AUSTRAC media releaseSources
AUSTRAC media release powers proposed to tackle high-risk products (https://www.austrac.gov.au/news-and-media/media-release/powers-proposed-tackle-high-risk-products-services-and-channels); CoinDesk — Australia’s Government Proposes New Powers for AUSTRAC to Restrict Crypto ATMs (https://www.coindesk.com/policy/2025/10/16/australia-s-government-proposes-new-powers-for-austrac-to-restrict-crypto-atms)