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Australia’s cybersecurity minister Tony Burke is drafting legislation that would give the country’s financial intelligence agency, AUSTRAC, the authority to restrict or ban crypto ATMs viewed as “high-risk products.”
The proposal comes amid growing concerns that such machines are being exploited for money laundering and that tracing illicit funds through them has proven difficult.
Burke clarified that not all users are involved in wrongdoing, but said the proportion of suspicious activity through crypto ATMs is concerning and harder to monitor compared to traditional banking systems.
Australia has rapidly become the world’s third-largest market for crypto ATMs, now hosting over 2,000 machines, a massive increase from just 67 in 2022. The majority are run by Localcoin, Coinflip, and Bitcoin Depot.
Coinflip argued that crypto ATMs already follow strict Know Your Customer rules, requiring ID verification and using blockchain analytics and camera monitoring. The company described the machines as a bridge between the physical and digital worlds, offering users access to crypto as traditional ATMs decline and banks remain cautious about digital assets.
Burke said the government won’t impose an outright ban but will give AUSTRAC discretionary powers to act when certain technologies pose high risks, allowing flexible regulation of emerging products