Australia’s Crypto ATMs Under Fire — Regulators Push for Ban Powers
Australia is ready to accentuate oversight of crypto ATMs by granting the Australian Transaction Reports and Analysis Centre (AUSTRAC) authority to limit or ban high‑threat companies.
Regulators cite rising considerations over fraud, cash laundering, and different illicit actions linked to those machines.
Rapid Expansion Raises Concerns
The variety of crypto ATMs in Australia has surged from roughly 23 in 2019 to over 2,000 in the present day. A survey of frequent customers indicated that about 85 % have been both victims of scams or appearing as intermediaries for illicit funds. AUSTRAC estimates round 150,000 transactions happen yearly by these machines, with a complete worth of roughly US$275 million.
Australia now ranks because the world’s third-largest crypto ATM market, behind Canada and the US. Regulators are significantly involved about senior citizen customers: these aged 50–70 account for practically 72 % of transaction values and are extra weak to fraud.
New regulatory measures
AUSTRAC’s prior steps included capping money deposits at $3,250 (AUD 5,000). They additionally enforced stronger buyer due diligence necessities and mandated scam-warning notices on machines.
The proposed laws would broaden AUSTRAC’s authority, permitting the regulator to deal with whole classes of high-risk services and products, somewhat than particular person operators alone.
AUSTRAC CEO Brendan Thomas famous the brand new powers would allow extra responsive actions against evolving risks, significantly the place money-laundering stays prevalent. The legislation may probably enable outright bans on particular crypto ATM companies.
The transfer indicators that operators should strengthen compliance, threat administration, and transaction monitoring. While some business voices argue crypto ATMs already incorporate KYC procedures and a ban may hinder innovation, regulators stress that their goal is crime prevention, not stifling technological growth.
Australia’s strategy mirrors worldwide traits, with jurisdictions more and more focusing on cash-to-crypto channels. By enhancing AUSTRAC’s authority, the federal government goals to cut back rip-off publicity, safeguard weak customers, and keep the monetary system’s integrity.
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