Australia’s financial intelligence agency may soon have the authority to impose limitations or outright bans on cryptocurrency ATMs, according to recent draft legislation introduced by Minister for Cybersecurity and Home Affairs, Tony Burke.

Burke stated that while the government is not pursuing a full ban on crypto ATMs, it aims to empower the Australian Transaction Reports and Analysis Centre (AUSTRAC) to restrict or prohibit what they classify as “high-risk products”, including crypto ATMs.

“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.”

Despite regular ATMs also being utilized for scams, Burke highlighted the challenges in monitoring crypto ATMs and the concern they could facilitate money laundering activities.

Australia has seen a rapid increase in the installation of cryptocurrency ATMs, moving from just 67 in August 2022 to now being the third-largest global hub with 2,008 units. The growth followed increased interest from private companies entering the market.

Perspective from Crypto ATM Operators

The majority of crypto ATMs in Australia are operated by three main providers: Localcoin (868), Coinflip (682), and Bitcoin Depot (267). In a recent statement, a spokesperson from Coinflip noted that these ATMs already adhere to strict regulations, which include Know Your Customer (KYC) requirements.

AUSTRAC has implemented measures to monitor such services and recently enacted new operating rules and transaction limits.

The spokesperson further emphasized that these machines include several safety features, such as cameras and real-time scam alerts, to combat illicit activities.

Burke clarified that while the government is not recommending an outright ban of these machines, he intends to provide the necessary authority to AUSTRAC for future regulatory decisions regarding high-risk products.