The post Australia To Ban Crypto ATMs Amid Rising Money Laundering Risks appeared first on Coinpedia Fintech News
Crypto ATMs, once seen as a convenient bridge between cash and digital money, are now facing major scrutiny in Australia. Home Affairs Minister Tony Burke has announced plans to give its financial intelligence agency AUSTRAC new powers to ban high-risk products like crypto ATMs, which have become a growing tool for scams and money laundering.
Crypto ATMs Under Scrutiny
If approved, the new law will give AUSTRAC greater flexibility to act quickly against products that pose financial crime risks. Meanwhile, AUSTRAC CEO Brendan Thomas welcomed the move, saying it would give the agency more flexibility to tackle evolving risks.
Thomas noted that crypto ATMs are a particular concern because they let users turn cash into digital currencies and send funds anywhere in the world, often without disclosing their identity.
This anonymity has made them an easy target for scammers and money launderers alike.
Rapid Growth, Rising Risks
Crypto ATMs have grown fast in Australia from just 23 six years ago to nearly 2,000 today. AUSTRAC’s taskforce estimates these machines handle around 150,000 transactions a year, moving about $275 million nationwide.
A joint review by AUSTRAC and police found that 85% of frequent users were either scam victims or unknowingly helping criminals.
Most affected are older Australians aged 50–70, who make up about 72% of total transaction value.
Will Crypto ATMs Be Banned?
Burke hasn’t confirmed a full ban yet, but tougher rules are clearly on the way. He said new legislation will give AUSTRAC the power to restrict or stop high-risk services like crypto ATMs.
The move follows months of investigations. AUSTRAC has already warned operators, revoked some licenses, and capped ATM transactions at $5,000 to stop misuse.
Burke warned that cash-to-crypto transactions are hard to trace, making them ideal for criminals.
However, not everyone supports a crackdown. James Volpe, founder of Web3 education firm uCubed, argued that crypto ATMs aren’t the main problem. He urged regulators to use better tracking tools instead of stifling innovation.
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FAQs
A full ban isn’t confirmed, but new laws will give the financial watchdog AUSTRAC the power to restrict or ban them due to high scam and money laundering risks.
Australia’s nearly 2,000 crypto ATMs handle an estimated $275 million annually across roughly 150,000 transactions, according to AUSTRAC’s data.
Some industry advocates argue ATMs aren’t the core problem and urge regulators to use better tracking tools instead of restricting the technology.
