Australia’s Crypto Crackdown: Unrealized Gains Tax & ATM Restrictions Hit Digital Asset Holders

Down Under takes a bite out of crypto—regulators now want a cut of paper profits before you even sell. Meanwhile, anonymous cash-to-crypto ATMs face the squeeze.

Taxing unrealized gains? That’s like charging farmers for rainfall before crops sprout. But hey, governments never miss a chance to monetize hope.

ATM operators are sweating too—new KYC rules could turn these machines into glorified brick-and-mortar exchanges. So much for crypto’s frictionless ethos when bureaucracy comes knocking.

One bureaucrat’s ’consumer protection’ is another investor’s handcuffs. The land of kangaroos and beaches just made hodling a whole lot more complicated.

Financial industry reacts

Top figures in the financial sector have sharply criticized the initiative. Tom Lee, Chief Investment Officer at Fundstrat Capital, called it an “insanely bad idea,” warning that taxing paper gains could undermine investment activity and hurt the economy. Ripple CTO David Schwartz offered a more measured view, suggesting that investors might be able to use their appreciated assets as collateral to secure loans to pay the tax, giving them some breathing room.

As July approaches, debate over the initiative is intensifying. Supporters argue the tax will help fill budget gaps, while critics fear it could harm Australia’s appeal to investors — particularly in volatile sectors like cryptocurrency.

New rules for crypto ATMs amid scam concerns

Amid the new tax initiatives, Australia’s financial intelligence agency AUSTRAC, has introduced stricter requirements for crypto ATM operators. According to Cointelegraph, the new rules include a limit of 5,000 Australian dollars (3,250 U.S. dollars) on cash transactions, enhanced transaction monitoring, and stricter customer verification procedures.

AUSTRAC stated that the measures respond to a rise in crypto ATM-related scams. Over the past year, more than 150 fraud cases have been reported, with total losses exceeding 3.1 million Australian dollars. The agency found that 72% of transaction volume comes from users over 50, many of whom have fallen victim to scams.

AUSTRAC CEO Brendan Thomas said the rules aim to prevent criminal misuse of ATMs and will be adjusted as needed.

These actions demonstrate Australia’s tightening approach to digital finance, from taxing crypto gains to cracking down on fraud.

Previously, the, at increasing transparency, safeguarding consumer rights, and addressing market integrity risks.