AUSTRAC May Be Empowered to Restrict Crypto ATMs as Australia Targets Money-Laundering Risks

• AUSTRAC gains authority to restrict or impose conditions on crypto ATMs.

• New rules introduce transaction caps, stronger KYC and mandatory on-device warnings.

• AUSTRAC estimates ~150,000 ATM transactions and AU$275 million flow through crypto ATMs annually; most high-value activity links to fraud and money mules.

crypto ATMs Australia: AUSTRAC tightens rules to curb money laundering and scams, protect vulnerable users, and require stronger KYC—read the full regulatory impact and next steps.

What are the new AUSTRAC crypto ATM restrictions and why were they introduced?

AUSTRAC crypto ATM restrictions give the regulator power to limit, condition or close crypto ATM services in Australia to tackle money laundering, fraud and exploitation. The measures include transaction limits, enhanced Know Your Customer (KYC) checks and mandatory warnings on machines, designed to protect vulnerable consumers and reduce criminal misuse.

How will the rules change operations for crypto ATM providers?

Operators will face tighter controls: transaction caps (recently set at AU$5,000), stricter identification requirements and obligations to display warnings at points of service. AUSTRAC’s Crypto Taskforce data show that operators must now implement stronger transaction monitoring and cooperate with enforcement partners. These changes aim to make on-ramps and off-ramps for cash-to-crypto conversions less attractive to money launderers and scammers.

Background: what prompted the regulatory action?

Australia’s Home Affairs Minister, Tony Burke, described crypto ATMs as a “high-risk product” linked to money laundering, scams and child exploitation. AUSTRAC identified rapid proliferation—growth from 23 machines six years ago to roughly 2,000 today—and concerning usage patterns. AUSTRAC’s Crypto Taskforce estimates approximately 150,000 transactions and around AU$275 million are processed annually through these machines, with much of the high-value activity tied to fraud and money mules.

What evidence and expert statements support the move?

AUSTRAC CEO Brendan Thomas has publicly backed the amendment, warning of “unacceptable risk of money laundering across some channels.” Minister Burke provided usage demographics, noting that over 72% of transaction value originates from users aged 50–70, a cohort disproportionately targeted by scams. The Crypto Taskforce reported that roughly 85% of the most frequent ATM users were either money mules or victims of fraud. Sources: AUSTRAC media release; statements by Tony Burke and Brendan Thomas; COINOTAG reporting.

Frequently Asked Questions

Will existing crypto ATM transactions be limited immediately?

If Parliament passes the amendment, AUSTRAC will be empowered to impose immediate operational conditions on machines. Previously announced measures already include a AU$5,000 deposit/withdrawal cap and reinforced KYC; any further restrictions will depend on regulatory implementation timelines and operator compliance.

How can everyday Australians verify a crypto ATM is operating lawfully?

Look for clear on-device KYC prompts, transaction limits displayed on-screen, and visible warnings about fraud. Lawful operators should cooperate with law enforcement and adhere to AUSTRAC guidance. If a machine lacks these features or appears altered, report the machine to local authorities or AUSTRAC through official channels (refer to AUSTRAC communications).

Key Takeaways

• Regulatory authority expanded: AUSTRAC can now restrict or condition crypto ATM operation to curb criminal misuse.
• Data-driven action: Taskforce figures (≈150,000 transactions; ~AU$275M) and demographic risks (older users disproportionately impacted) underpin the rules.
• Practical steps for operators and users: Operators must strengthen KYC and monitoring; users should watch for warnings and transaction caps and exercise caution against unsolicited requests to use ATMs.

Conclusion

AUSTRAC’s enhanced authority targets the rapid growth of crypto ATMs and documented links to money laundering and fraud, with policy tools such as transaction caps, improved KYC and enforceable conditions on operators. COINOTAG will continue to monitor implementation and report updates; operators and users should prepare for stricter compliance and heightened scrutiny.

Published: 15 October 2025 | Updated: 16 October 2025
Author/Organization: COINOTAG

Sources: AUSTRAC media release; statements by Tony Burke and Brendan Thomas; AUSTRAC Crypto Taskforce data; COINOTAG reporting.