Australia’s Government Proposes New Powers for AUSTRAC to Restrict Crypto ATMs

Australia’s Minister for Home Affairs Tony Burke seeks to grant new powers to the country’s anti-money laundering watchdog to crack down on cryptocurrency ATMs.

Burke proposed measures to enable the Australian Transaction Reports and Analysis Centre (AUSTRAC) to restrict or prohibit certain high-risk products, according to an announcement on Thursday.

The announcement did not specifically describe what the new powers would be, but said more details about the proposed amendments would become available in due course.

Crypto ATMs allow users to buy cryptocurrency by inserting cash or a bank card and having crypto delivered to a wallet. They are, however, often used for nefarious activity. Scammers may, for example, advertise goods for sale, direct their buyer to deposit funds to a specific wallet and then disappear.

There are 2,100 such terminals in Australia, according to data provided by Coin ATM Radar.

AUSTRAC specifically highlighted crypto ATMs as an example of a product it sought to restrict, as they allow money launderers to convert cash into digital currency “that can be sent instantly and virtually anonymously across the globe.”

“This is a product that is multiplying quickly — six years ago there were 23 machines in operation,” AUSTRAC CEO Brendan Thomas said. “Three years ago there were 200…That number has now risen to 2,000.”

AUSTRAC said that the majority of high-value crypto ATM transactions were directly associated with scams or moving money to high-risk jurisdictions, based on a sample of 90 of the most prolific users, of which 85% were directly associated with scams or similar.

The watchdog enacted restrictions on the use of crypto ATMs earlier this year. putting a limit on cash deposits and withdrawals and requiring operators to enhance their due diligence.

Read More: New Zealand Wants to Ban Crypto ATMs in Anti-Money Laundering Overhaul