Author
Sujha Sundararajan
Author
Sujha Sundararajan
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Australian Minister for Home Affairs Tony Burke unveiled new “powers” for AUSTRAC to curb the use of crypto ATMs.
Addressing the National Press Club in Canberra on Thursday, he explained that Bitcoin ATMs are being used by organized crime to launder money.
The minister pointed out that Australia’s financial crimes watchdog, AUSTRAC, found 85% of funds from top crypto ATM users were involved in scams.
Minister Burke said that though not all ATMs are at risk, there are significant problems in areas that are hard to trace.
“I want AUSTRAC to have the power to restrict, or if it decides, to prohibit high-risk products. Be in no doubt, crypto ATMs are a high-risk product,” he said.
Drastic Rise in Crypto ATMs
Australia has experienced a drastic surge in Bitcoin ATM installations over the past few years. From just 73 machines in 2022, the number has grown 16-fold, reaching over 1,200 by August 2024.
“This is a product that is multiplying quickly – six years ago, there were 23 machines in operation. Three years ago, there were 200,” said Brendan Thomas, AUSTRAC CEO.
“When we established the Crypto Taskforce at the end of last year, there were 1,200. That number has now risen to 2,000.”
A separate statement from the regulator noted that the powers would give Thomas additional options to reduce money laundering risks associated with high-risk products.
“We’re still seeing an unacceptable risk of money laundering across some channels,” Thomas added.
The financial crimes regulator has been taking down several crypto ATMs across Australia, following the establishment of an internal crypto taskforce last year.
In a statement early this month, AUSTRAC said it uncovered “a hidden world of scams and dodgy dealings,” from several kiosks.
“Our intelligence shows they pose serious risks for scams and money laundering, with dozens of scam victims identified,” it said.
The agency has already identified money mule activity and scams targeting older Australians and implemented minimum standards for crypto ATM providers.
“The taskforce has produced incredible results in a brief time. We know there’s more we can do to protect Australians from unscrupulous operators, so we’re expanding this important work,” CEO Thomas said at the time.
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