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Australia’s Home Affairs Minister Tony Burke announced legislation Thursday granting financial intelligence agency AUSTRAC unprecedented authority to restrict or ban cryptocurrency ATMs, citing evidence that 85 percent of funds deposited by top users involve scams or money laundering operations linked to organized crime and child exploitation.
Speaking at the National Press Club in Canberra, Burke revealed that Australia now ranks third globally for crypto ATM installations, with 2,000 machines operating across the country—a dramatic escalation from just 23 machines six years ago and 200 three years ago.
The minister detailed how these machines process approximately 150,000 transactions annually worth $275 million, with an unusual pattern that distinguishes them from traditional ATMs: 99 percent of crypto ATM transactions are deposits rather than withdrawals.
Burke described crypto ATMs as creating significant vulnerabilities in Australia’s financial tracking systems. When cryptocurrency is purchased through traditional bank accounts, authorities maintain clear traceability. However, cash-based crypto purchases through ATMs substantially reduce law enforcement’s capacity to trace illicit funds.
Scam Victims and Organized Crime Links
The minister provided a detailed case study illustrating the human cost of crypto ATM exploitation. A 77-year-old widowed woman lost $430,000 after meeting a man claiming to be Belgian on a dating app. Over eight months of online-only contact, the scammer convinced her to make repeated crypto ATM deposits.
The woman would withdraw cash in quantities designed to avoid detection alerts, at one point carrying $20,000 in cash, Burke said. Authorities only discovered the fraud after nearly half a million dollars had been transferred.
A 2024 Australian Transaction Reports and Analysis Centre task force investigation linked crypto ATMs to money laundering, scams and fraud, illegal substances, and child exploitation. The research examined the platform’s highest-volume users and found the overwhelming majority of funds connected to criminal activity.
Legislative Response
Burke announced he is introducing amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act that will grant AUSTRAC new regulatory powers. The legislation will enable the financial intelligence agency to restrict or prohibit what Burke characterized as high-risk products.
“I want AUSTRAC to have the power to restrict or if it decides to prohibit high-risk products, and be in no doubt crypto ATMs are a high-risk product,” Burke stated during his address.
The minister declined to specify exactly how AUSTRAC would deploy these new powers, citing concerns about potential legal challenges. However, he indicated the authority would encompass both restriction and complete prohibition options.
When questioned about implementing an outright ban, Burke explained his preference for providing regulatory flexibility rather than rigid legislative mandates. He emphasized the rapidly evolving nature of financial crime and the need for enforcement agencies to adapt to emerging threats without requiring new parliamentary approval for each development.
Cryptocurrency Industry Context
Burke made clear the government does not oppose cryptocurrency as an economic tool or payment method. He acknowledged that many Australians engage with cryptocurrency through legitimate channels and that digital currency has become an established element of the financial landscape.
The concern centers specifically on cash-based crypto ATM transactions, which create what Burke described as an “easy point of entry for some of the worst elements in our country to be able to transfer cash into currency in a way that is harder for us to be able to find.”
Financial industry representatives have privately raised concerns about crypto ATMs with the Home Affairs portfolio, according to Burke. The Australian Banking Association has been among those pushing for stronger regulatory frameworks around these machines.
International Comparisons
Australia’s crypto ATM proliferation places it among the world’s leaders in deployment of these machines. The United States and Canada both maintain larger crypto ATM networks, while other jurisdictions have taken more restrictive approaches.
Burke noted that the United Kingdom does not permit crypto ATM operations, though he did not indicate whether Australia would follow that model or pursue more nuanced restrictions.
Portfolio Structure and Money Laundering Focus
The minister framed the crypto ATM announcement within broader reforms to Australia’s home affairs architecture. Burke explained that consolidating AUSTRAC, the Australian Federal Police, ASIO, the Criminal Intelligence Commission, and other agencies under unified home affairs leadership enables more seamless policy coordination.
“The combination of my policy role with Home Affairs in the first one with respect to the crypto ATMs, having AUSTRAC within the portfolio makes that conversation seamless,” Burke said, defending the portfolio structure against critics.
The minister emphasized that contemporary security threats involve convergence across previously distinct categories. Criminal networks now simultaneously exploit cyber vulnerabilities, money laundering channels, and technologies like artificial intelligence in integrated operations.
Burke cited several recent investigations demonstrating this convergence, including the Dural Caravan case involving cooperation between the Australian Federal Police, ASIO, New South Wales Police, and the New South Wales Crime Commission.
Implementation Timeline
Burke did not specify when the amendments would be introduced to Parliament or when AUSTRAC’s new powers might take effect. The minister indicated that legislative drafting is underway and that he expects to table the bill in upcoming parliamentary sessions.
Opposition response to the announcement was not immediately available. The government holds majority support for most financial crime legislation, suggesting the amendments face favorable prospects for passage.
Consumer protection advocates and cryptocurrency industry representatives have not yet issued formal responses to the proposed regulatory framework.
Enforcement Capacity
The announcement comes as Australian law enforcement agencies report increasing sophistication in transnational criminal networks’ exploitation of financial technology. Burke emphasized that disrupting any element of organized crime’s business model creates cascading effects across all connected criminal enterprises.
Beyond crypto ATMs, Burke announced concurrent measures targeting money mule networks, demonstrating the government’s multi-pronged approach to financial crime. The minister stressed that both initiatives serve the home affairs portfolio’s core mission: ensuring Australians are safe, feel safe, are welcomed, and feel at home.
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