Crypto ATMs, once a convenient bridge between cash and digital money, are increasingly seen as risky by Australian authorities.
Crypto ATMs Under Fire
Minister for Home Affairs Tony Burke announced new legislative measures that would give financial intelligence agency AUSTRAC the authority to ban high-risk products such as crypto ATMs. According to him, these machines are now actively used by scammers and money laundering networks.
AUSTRAC CEO Brendan Thomas welcomed the proposal, stating that the new powers would allow the agency to respond more quickly to evolving threats.
Thomas emphasized that crypto ATMs pose a particular threat because they allow users to exchange cash for digital currencies and send them anywhere in the world—often anonymously. This anonymity makes them attractive to fraudsters and money launderers.
Rapid Growth and Rising Risks
Over the past six years, the number of crypto ATMs in Australia has grown from just 23 to nearly 2,000. According to estimates by an AUSTRAC task force, these machines facilitate about 150,000 transactions annually, totaling around 275 million Australian dollars.
A joint investigation by AUSTRAC and police revealed that 85% of frequent users of these ATMs are either scam victims or unknowingly involved in criminal activities.
Elderly Australians aged 50 to 70 are particularly vulnerable, accounting for about 72% of the total transaction volume.
Will Crypto ATMs Be Banned?
Minister Burke has not confirmed a full ban but stressed that the new rules would give AUSTRAC the authority to restrict or suspend high-risk services such as crypto ATMs.
This follows months of investigations—AUSTRAC has already issued warnings to operators, revoked licenses, and imposed a $5,000 transaction limit on crypto ATMs.
Burke stated that cash-to-crypto transactions are hard to trace and serve as a convenient tool for criminal activity.
Criticism of Harsh Measures
Not everyone supports the upcoming restrictions. James Volpe, founder of Web3 education company uCubed, said crypto ATMs are not the core issue. He called on regulators to implement better tracking tools instead of stifling innovation in the sector.
The problem isn’t the technology, it’s the lack of effective oversight. Bans will only push away legitimate users.
said Volpe.
Conclusion
Australia is preparing for strict measures against crypto ATMs in an effort to combat fraud and money laundering. AUSTRAC is expected to gain new powers allowing it to respond more flexibly and swiftly. While a full ban is not yet in place, the direction toward serious restrictions is clear—sparking both support and criticism.
Frequently Asked Questions
Find answers to the most common questions below.
Due to increased risks of money laundering, fraud, and the difficulty of tracking cash-to-crypto transactions.
Not confirmed yet. AUSTRAC will gain the power to restrict or suspend services deemed high-risk.
Primarily older citizens aged 50 to 70, often unknowingly exposed to scams.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
