The proposed Australia crypto ATM policy could grant AUSTRAC unprecedented power to restrict or ban cryptocurrency ATMs across the country. Minister Tony Burke cites money laundering and scam risks as the primary drivers behind the regulatory push.
Key Insights
- The Australian government is drafting laws that could allow AUSTRAC to restrict or ban Crypto ATMs.
- Minister Tony Burke says the machines pose a risk for scams and money laundering.
- Crypto companies argue that the machines already follow strict security and verification rules.
Australia is preparing a new Australia Crypto ATM policy that could give its financial watchdog, AUSTRAC, the power to restrict or ban Crypto ATMs. Home Affairs Minister Tony Burke announced the proposal as part of a plan to tighten controls on money laundering, scams, and other financial crimes.
Crypto ATMs have grown in Australia over the past few years. They let users buy or sell cryptocurrency with cash. But authorities say that the same feature has made them attractive for criminals looking to move untraceable funds.
How the Australia Crypto ATM Policy Targets Money Laundering?
During a speech at the National Press Club, Burke said AUSTRAC needs stronger powers to manage “high-risk products” like Australia crypto ATM policy. He pointed to cases where large sums flowing through these machines came from scams or so-called “money mules.”
Burke explained that while most people use Australia crypto ATM policy legally, the risks are still too high. “I’m not pretending that everyone using these machines is a problem,” he said. “But the number of cases tied to criminal activity is difficult to trace.”
AUSTRAC already oversees Australia’s anti-money laundering framework.
If things move in the wrong direction, the agency could gain new authority to ban or limit Crypto ATMs under the draft legislation. However, the government will not push for a total ban.
Instead, it wants to give AUSTRAC flexibility to act when necessary.
Growth of Australia Crypto ATMs policies in Australia
Australia crypto ATM policy network has grown from just 67 machines in 2022 to over 2,000 today. That surge has made the country the third-largest market for these machines after the United States and Canada.
The expansion was driven mainly by private companies like Localcoin, Coinflip, and Bitcoin Depot. Together, they operate more than half of all Crypto ATMs in Australia. These machines allow users to exchange cash for cryptos like Bitcoin and Ethereum within minutes.
While the popularity of digital assets continues to rise, so have worries about misuse. Authorities say that purchasing crypto with cash makes it hard to track transactions. This creates opportunities for fraud and illegal trade.
What AUSTRAC’s New Powers Could Mean
The draft law would not automatically outlaw Crypto ATMs. Instead, it would give AUSTRAC the ability to restrict or ban them if they present too much risk.
Burke said that the government does not plan to dictate how AUSTRAC uses this authority. He believes the agency should decide when regulation or prohibition is needed. “We’re giving them the power to act when something becomes high risk,” he said.
This approach is aimed at making the rules adaptable. New financial technologies appear quickly, and regulators want tools to respond without waiting for Parliament to pass new laws each time.
Ongoing Crackdowns and Tighter Controls
AUSTRAC’s increased attention to Crypto ATMs began in early 2023, when it launched a task force to investigate suspicious money flows. By mid-2025, the agency had refused to renew licenses for certain operators, including Harro’s Empires. It had also introduced transaction limits of $5,000.
Those changes already forced providers to adopt stricter monitoring tools. Some machines now block transactions that show signs of scams or are linked to flagged wallets.
The new draft law would build on that progress and formally give AUSTRAC the power to act more decisively.
Balancing Innovation and Security
Overall, Australia’s digital economy depends on trust. Regulators must make sure that innovation does not come at the cost of safety.
Crypto ATMs show that challenge more than any other set of machines. They help ordinary people to use digital assets, but they also create a channel that criminals can take advantage of.
Burke’s plan is expected to give AUSTRAC the power to respond to new risks without cutting off legitimate users. Crypto firms, on the other hand, want assurance that regulation will not crush innovation.
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