The Australian government is set to roll out sweeping new measures to rein in cryptocurrency transactions via crypto ATMs, targeting their misuse as conduits for money laundering, terrorism financing, and organised crime.
The proposals were laid out today by Home Affairs Minister Tony Burke in a major address at the National Press Club. Burke emphasised that crypto ATMs represent a “high-risk product” requiring stricter oversight.
He revealed that the number of crypto ATMs in Australia has exploded, from as few as 23 six years ago to over 2,000 today, making Australia among the world leaders in such installations.
He noted that crypto ATM usage is overwhelmingly cash-deposit based, exposing them to potential abuse. According to AUSTRAC, 85 percent of the volume transacted by the most frequent users is tied to scams or money-mule operations.
The regulator also estimates that 99 percent of crypto ATM transactions are cash deposits. In his speech, Burke said criminals shut out from banks and regulated exchanges are increasingly turning to crypto ATMs as a less traceable channel.
One major plank of the reform will target so-called “mule accounts,” legitimate bank accounts often rented or sold by international students or visa-holders to facilitate laundering. Burke said banks would be enabled to verify the visa status of account holders when mule activity is suspected.
He described this as a way to “equip banks with the right information” to combat criminal takeover of accounts. Under the proposed changes, AUSTRAC would gain authority to restrict or outright prohibit products deemed high-risk, including crypto ATMs.
The legal amendments would extend existing financial services laws to cover digital asset businesses in a targeted manner. Critics are likely to challenge the balance between consumer protections, legitimate crypto usage, and regulatory overreach.
Still, Burke insisted the reforms aim to “legitimize good actors and shut out the bad,” fostering business certainty and public confidence. If passed, these changes would mark one of Australia’s most aggressive regulatory moves to date in curbing the criminal exploitation of crypto ATMs.