Australia Moves To Limit Crypto ATMs
Australia is set to crack down on cryptocurrency ATMs following allegations that the machines are being used to launder millions of dollars linked to organised crime, scams and child exploitation.
Home Affairs Minister Tony Burke announced sweeping reforms this week calling crypto ATMs a “high risk product” and warning that the devices have become a preferred channel for criminals to move illicit funds.
The government’s decision follows findings by the Australian Transaction Reports and Analysis Centre (AUSTRAC) which estimates that 85 per cent of transactions by top crypto ATM users are connected to scams or “money mule” operations.
Money Laundering Concerns Raised
These mules often international students or temporary visa holders unknowingly allow their bank accounts to be used for transferring proceeds of crime. Once traditional banks detect suspicious activity and block such accounts. Offenders reportedly turn to crypto ATMs to continue laundering cash anonymously.
Crypto ATMs allow users to buy or sell digital currencies using cash or debit cards without going through banks making them attractive for people seeking to evade detection. According to AUSTRAC data, around 99 per cent of crypto ATM transactions in Australia involve cash deposits.
An indicator of high money laundering risk. Burke said the government will grant AUSTRAC’s chief executive new powers to restrict or prohibit high risk products and delivery channels, including these machines.
Australia Ranked 3rd in Crypto ATMs
Australia’s rapid growth in the number of crypto ATMs has also raised concerns. Six years ago, there were only 23 machines in the country. That number surged to 200 by 2022 and now exceeds 2,000 placing Australia third globally in the number of operating units. Authorities estimate that the machines handle about 150,000 transactions annually moving roughly USD 275 million in cash.
As part of the broader reforms banks will gain new access to immigration data to help identify and close mule accounts once their holders leave the country. Under updated Visa Entitlement Verification Online (VEVO) conditions, financial institutions will be able to verify whether suspicious accounts are still linked to active visa holders. Burke said this data sharing measure will help banks determine if they are dealing with accounts being misused by criminals. The minister also highlighted human stories behind the statistics, recounting a case involving a 77 year old widow who lost AUD 430,000 after being manipulated by an online romance scammer. The scammer directed her to repeatedly deposit cash into crypto ATMs under the guise of investing in digital assets.
“This is about legitimising the good actors and shutting out the bad,” Burke told the National Press Club. “The world of digital assets has both good and bad actors. We want to give consumers confidence while cutting off the pathways that enable the worst crimes in our society.”
The proposed legislation will amend the Anti Money Laundering and Counter Terrorism Financing Act, empowering AUSTRAC to act swiftly against risky crypto services. With Australia’s ban expected to take effect later this year the move signals one of the most aggressive global efforts to curb crypto related financial crime.
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