Australian Regulators Consider Widespread Crypto ATM Ban, Here’s More

Australia has announced new rules as it beefs up plans to crack down on crypto ATMs, linking the service to the growing rate of digital asset fraud. This follows plans to grant the Australian Transaction Reports and Analysis Center (AUSTRAC) new powers to restrict certain services, including crypto ATMs. Analysts have argued that widespread negative regulations could halt the rising market momentum.

Australia Extends Crypto ATM Crackdown

The country’s Home Affairs Minister, Tony Burke, disclosed new guidelines referring to the ATMs as high-risk used in crypto scams, money laundering, and child exploitation. Regulators aim to extend proceeds to protect investors in the financial market amid similar global leanings.

According to Burke, acquiring crypto with cash makes it difficult for authorities to trace, leading to an increasing number of bad actors. Citing recent data, he said that 85% of crypto ATM users can be linked to scams, and he announced the government’s decision to take a new approach.

Going further, he questions the fast adoption of these machines in the country within a few years. In six years, the number of crypto ATMs has soared from 23 to 2000. “Six years ago, Australia had 23 of them. Three years ago, Australia had 200 of them. Now, we have 2,000 of them. It’s grown and grown rapidly. When they looked at the top users, the top users who are putting the most money into crypto ATMs, 85% of the money going through for the top users involved scams or money mules.”

At the moment, authorities are prepping a stricter regulation over the market. If passed, AUSTRAC will have to restrict and prohibit new machines. This comes as Australia wants to regulate its domestic crypto market to protect investors.

This year, the crackdown on crypto ATMs switched gears with AUSTRAC placing operators on notice.’ Subsequently, authorities did not renew licenses of some operators and imposed a $5,000 transaction cap across the market.

Globally, regulators have also boosted efforts to keep the sector in check to prevent the influx of more bad actors. While crypto ATMs are in focus in Australia, centralized exchanges, stablecoins, and decentralized finance (DeFi) protocols are also being monitored. A large portion of the community has hailed recent efforts as necessary due to traditional capital inflows. However, some commentators express caution to prevent over-regulation, which will limit innovation.