Australia’s Home Affairs Minister, Tony Burke, has proposed giving the AUSTRAC CEO new powers to restrict or prohibit certain high-risk products, services, and delivery channels to help combat money laundering.
In the proposal, AUSTRAC CEO Brendan Thomas said crypto ATMs are a concern because they convert cash into digital currency quickly and almost anonymously. This makes it easier for criminals to move money across borders. AUSTRAC data shows most of the top users are scam victims or “money mules,” often without realizing it.
Burke highlighted the rapid growth of crypto ATMs, from 23 machines six years ago to around 2,000 today. He noted that a significant portion of high-value transactions involve scams, fraud, or money laundering.
AUSTRAC’s Crypto Taskforce estimates about 150,000 transactions occur through these machines each year, involving around $275 million. People aged 50–70 account for nearly 72% of the total transaction value. In a sample of the 90 most active users, 85% were victims of scams or coerced into moving money.
Current rules
Authorities have already imposed transaction caps and refused license renewals for some operators. The current anti-money laundering and counter-terrorism financing regime requires businesses to monitor transactions, perform customer due diligence, submit threshold and suspicious matter reports, and manage transaction limits.
However, AUSTRAC noted that organized criminals are constantly developing new methods to bypass these controls. Further details on the proposed legislation are expected in the coming months.
The move follows international trends. In July, New Zealand announced plans to ban crypto ATMs and counter-terrorism laws. After this, Illinois Governor JB Pritzker approved new laws to regulate crypto. The rules let authorities oversee crypto companies and require them to have enough funds, follow security rules, and give clear information to customers.
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