Australia is speeding up its rules after a sharp rise in crypto cash machines and their role in scams. AUSTRAC and government MPs want new powers that let them shut down or limit any service they label “high risk”. The step touches the firms that run the machines, older people and foreign students who lose money, plus the rule book that banks must follow.
Crypto cash machines have spread fast across Australia, rising from only 23 in 2019 to more than 1,800 today, with some counts exceeding 2,000, placing the nation third behind Canada and the United States.
Officials say cash-to-coin kiosks help fraudsters move stolen money and launder funds. Minister Tony Burke has labeled the machines “high-risk”, and AUSTRAC has traced 90 top accounts that sent cash to scams or acted as money mules.
Interim safeguards are already in force, including a AU$5,000 cap per deposit, on-screen anti scam warnings at every terminal, and tighter identity checks.
Australia: shut down or limit any service they label as high risk
Regulators frame the goal as crime prevention without blocking new tech. AUSTRAC chief Brendan Thomas says the aim is to “stop crime and protect the financial system, not block new tech,” while both major parties back a draft law that would let agencies act against whole product types instead of chasing single firms.
Operators warn a broad ban would lock out legitimate users of a lawful service. Companies such as Coinflip say they already use ID checks, cameras, blockchain trackers and live alerts, arguing that sweeping restrictions are unnecessary.
Authorities point to real victims and the role of mules. People aged 50 to 70 account for 72 per cent of dollars lost to scams, including one woman in her seventies who fed AU$430,000 into machines. Criminal crews also recruit foreign students as money mules, and banks now hold stronger powers to halt those transfers. Under KYC, a firm must check who the customer is and how risky the customer appears before allowing any deal.
Compliance burdens for kiosk operators would rise, with tighter ID verification, closer transaction monitoring and more reporting, while investors may see less buying pressure from people who lack bank accounts. If a ban takes effect, some kiosk firms would exit the market or shift to models with tougher ID steps.
Parliament must next vote on giving AUSTRAC wider powers, and the result will show whether Australia picks narrow limits or a wider regime that could shut down certain crypto ATM services for good.
