Australia Considers New Regulations for Crypto ATMs

Australia’s national financial intelligence body is poised to receive new powers to limit or ban cryptocurrency ATMs under upcoming legislation discussed by Tony Burke, the Minister for Cybersecurity and Home Affairs. Burke indicated in a recent address at the National Press Club that the proposed law would grant the Australian Transaction Reports and Analysis Centre (AUSTRAC) the authority to regulate ‘high-risk products,’ including crypto ATMs.
While standard bank ATMs can also be associated with scams, Burke noted that crypto ATMs currently present more substantial challenges in tracking illicit transactions, raising concerns about their potential use for money laundering.

“I’m not pretending for a minute that everybody who goes in and uses a crypto ATM is a problem, but proportionately what’s happening is a significant problem in an area which is much harder for us to trace.”
Australia’s Growth in Crypto ATM Usage
Initially lagging, Australia has rapidly become a significant player in the crypto ATM market, with the number of these machines growing from 67 in August 2022 to 2,008. This places Australia as the third-largest market globally for crypto ATMs, following the US and Canada.

Major Providers in Australia

At present, over half of the crypto ATMs in the country are operated by three companies: Localcoin (868 ATMs), Coinflip (682 ATMs), and Bitcoin Depot (267 ATMs). A spokesperson for Coinflip explained that their machines are already subject to stringent regulations, including Know Your Customer (KYC) procedures that require valid IDs for transactions.
AUSTRAC has previously conducted crackdowns on crypto ATMs and implemented new operational regulations and transaction limits earlier this June.

Enhanced Safety Features

Coinflip also highlighted that their ATMs incorporate advanced security measures, including cameras, blockchain analytics for pre-transaction monitoring, and real-time scam alerts to ensure safe usage.

“Crypto ATMs are an important bridge between the physical and digital world, taking cryptocurrency out of the cloud and into the physical world using a familiar experience.”
New Powers for AUSTRAC
Burke reassured that the government does not aim for a complete ban on crypto ATMs but rather seeks to empower AUSTRAC to take necessary measures to manage these devices’ regulation effectively.
“I’m not sure what the next thing is going to be, and there will be times when AUSTRAC may decide on something that doesn’t quite fit that definition, but is similar to do they want to ban or do they want to regulate?”
For additional insights, check out Cointelegraph Magazine’s Perth Crypto City Guide.
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