Australia Tightens Crypto ATM Regulations to Combat Illicit Activities
Australia is set to grant its financial intelligence agency, AUSTRAC, new powers to regulate the contry’s growing crypto ATM market. Home Minister Tony Burke highlighted the need for stricter measures during a speech at the National Press Club in Canberra.
Burke warned that the majority of top crypto ATM users are linked to illegal activities. These include money laundering,scams,fraud,drug trade,and even child exploitation.The number of crypto ATMs in Australia has surged from just 23 six years ago to over 2,000 today, making it the third-largest market globally.
While crypto ATMs aren’t inherently bad, they are often used in fraud schemes. Scammers redirect victims to these machines, especially senior citizens, to make transactions harder to trace. AUSTRAC found that 85% of the top users’ transactions involved scams or money mules.
AUSTRAC has already taken steps to curb misuse. They imposed a 5,000 Australian dollar cash limit and stricter compliance rules for operators. These measures aim to protect individuals from scams and businesses from criminal exploitation.
New regulations are being drafted to give AUSTRAC more control over “high-risk products” like crypto ATMs.Though, it’s unclear if this will lead to a complete ban, as seen in some other countries.
These actions reflect Australia’s commitment to maintaining a secure financial environment while embracing emerging technologies like cryptocurrencies.
