Australia Grants AUSTRAC New Powers to Regulate Crypto ATMs Amid Rising Illicit Activity

Australia is tightening its grip on cryptocurrency ATMs as authorities link the machines to a surge in financial crimes. The government will empower AUSTRAC, the nation's financial intelligence agency, to restrict or ban these high-risk devices. Home Affairs Minister Tony Burke confirmed the move, citing crypto ATMs' role in money laundering, drug trafficking, and child exploitation.

The number of crypto ATMs in Australia has exploded from 23 to nearly 2,000 since 2018. Their anonymous, cash-to-crypto conversions create blind spots for law enforcement. "Crypto ATMs are a high-risk product," Burke declared at the National Press Club, framing the crackdown as a national security imperative.

This regulatory escalation mirrors global trends as jurisdictions wrestle with cryptocurrency's dual nature. While digital assets gain institutional acceptance, their pseudonymous features remain attractive to bad actors. Australia's approach—targeting specific on-ramps rather than blanket bans—reflects a nuanced attempt to curb abuse without stifling innovation.