What happened? The Australian government has proposed new powers for AUSTRAC to restrict or prohibit high‑risk crypto ATMs.
Minister Tony Burke said Bitcoin ATMs are being used by organised crime and that AUSTRAC found 85% of funds from top ATM users were linked to scams. The regulator’s crypto taskforce has been removing vulnerable kiosks as ATM numbers exploded from a few dozen to over 2,000 in recent years.
Who does this affect? Operators of crypto ATMs, people using those machines (including scam victims), and crypto businesses that rely on cash on‑ramps.
Operators face tougher compliance, potential restrictions or bans on high‑risk machines, and new minimum standards to follow. Consumers—especially older Australians targeted by scams—may see reduced access or more safeguards, while legitimate providers will need to tighten controls.
Why does this matter? It signals tighter regulation that will reduce a major money‑laundering channel but also change market access and behavior.
Cracking down on ATMs should boost trust in the market by cutting scam and mule activity, but it could also reduce retail on‑ramps and short‑term trading volumes for assets commonly bought at kiosks. Over time, compliant exchanges and regulated services may gain market share as users shift away from risky cash‑based routes, and providers face higher compliance costs.