- Proposed changes include allowing the financial intelligence agency to restrict or ban entire categories of crypto services (like ATMs), rather than acting only on specific operators
- AUSTRAC found that in a sample of high-volume users, around 85% of transactions were linked to scams or money-mule behavior
- Data from the agency indicates that ATMs process about 150,000 transactions each year, totaling around $275 million in value
AUSTRAC (Australian Transaction Reports & Analysis Centre) is being granted expanded regulatory powers to tackle what authorities are calling high-risk crypto ATM activity. Proposed changes include allowing the financial intelligence agency to restrict or ban entire categories of crypto services (like ATMs), rather than acting only on specific operators.
Brendan Thomas, CEO of AUSTRAC, stated: “The new authority would allow faster action in response to emerging threats. We are seeing patterns of misuse that need a stronger regulatory framework.”
The agency found that in a sample of high-volume users, around 85% of transactions were linked to scams or money-mule behavior.
Related: Australia Joins the Chorus of Regulators Demanding More From Binance
Data from AUSTRAC indicates that ATMs process about 150,000 transactions each year, totaling around $275 million in value. Roughly 72% of the value passing through these machines comes from users aged 50 to 70, a figure raising serious financial protection concerns among the authorities.
Australia has become the globe’s third-largest market for cryptocurrency ATMs, trailing only Canada and the United States. The country saw a big surge in crypto ATMs, going from just 23 six years ago to roughly 2,000 this year.
The broader crackdown
Alongside the ATM crackdown, Australia is also giving banks the right to access visa data to investigate suspects of mule account schemes, where overseas students or temporary visa holders are used to launder cash via ATMs and crypto accounts.
Also, earlier steps to improve safety included setting a $5,000 AUD maximum for cash deposits and requiring stricter ID confirmation at the machines. It is now also mandatory for these ATMs to display warnings about frequent scams.
As expected, industry operators responded with caution. While supportive of tighter AML controls, they argue that many ATMs already implement KYC and compliance (such as camera surveillance or wallet-monitoring), warning that an outright ban could do more harm than good by limiting future innovation in the sector.
This regulatory action points to a global-style shift, where regulators are no longer limiting oversight to exchanges. Instead, they’re now targeting cash-to-crypto entry points (e.g., ATMs) where traceability is minimal.
For the crypto market, this removes an easy way for new people to enter the ecosystem in Australia. With fewer simple options available, it may slow down investment from everyday users, especially those who aren’t as comfortable with complex technology.
Related: ASIC Grants Regulatory Relief Letting Brokers Distribute AFS-Issued Stablecoins
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