- Trending
- Comments
- Latest
Australia’s government is pushing forward with new crypto ATM regulation that could give its financial intelligence agency sweeping authority to restrict or ban the machines nationwide. The proposed law, introduced by Minister for Cybersecurity and Home Affairs Tony Burke, would empower the Australian Transaction Reports and Analysis Centre (AUSTRAC) to act against what it deems “high-risk products,” including cryptocurrency ATMs.
Speaking at the National Press Club on Thursday, Burke said the draft bill aims to tackle the growing challenge of illicit finance routed through crypto-linked services. “I’m not pretending for a minute that everybody who goes in and uses a crypto ATM is a problem”, Burke said. “But proportionately what’s happening is a significant problem in an area which is much harder for us to trace.”
The government’s renewed focus on crypto ATM regulation follows a sharp rise in the number of such machines across the country from just 67 in August 2022 to over 2,000 as of mid-2025. Australia now ranks as the third-largest market globally for crypto ATMs, according to data from Coin ATM Radar.
The move has sparked immediate concern among service providers and crypto advocates who argue that stricter crypto ATM regulation could harm innovation and user accessibility. Over 50% of Australia’s crypto ATMs are operated by three companies which are Localcoin, Coinflip, and Bitcoin Depot as all of which maintain that existing regulations already ensure compliance with anti-money-laundering (AML) standards.
A Coinflip spokesperson told Cointelegraph that their ATMs require full Know Your Customer (KYC) verification before transactions. Crypto ATMs are already subject to strict verification standards, including submission of valid government-issued identification, the spokesperson said.
Machines are also equipped with surveillance cameras, blockchain analytics tools, and real-time scam alerts safeguards the company says make them among the most traceable financial kiosks in operation. Crypto ATMs are an important bridge between the physical and digital worlds, the spokesperson added. They provide a secure and accessible way for users to engage with digital assets especially as traditional ATMs decline across Australia.
Critics of the new crypto ATM regulation fear that excessive restrictions could push users toward less-regulated peer-to-peer exchanges and informal brokers, undermining transparency rather than enhancing it.
Under the proposal, AUSTRAC will not automatically enforce a ban but will have discretionary authority to determine if and when restrictions are necessary. Burke clarified that the government will not recommend a blanket prohibition but intends to grant AUSTRAC “the power to restrict or ban those devices” to stay ahead of emerging financial technologies.
I’m not sure what the next thing is going to be, Burke said. There will be times when AUSTRAC may decide on something that doesn’t quite fit that definition but is similar. Do they want to ban or regulate? How do they want to deal with this?
The legislation echoes broader international trends toward crypto ATM regulation, with jurisdictions like Canada and the United States already tightening oversight. Analysts note that Australia’s proposal aligns with global anti-money-laundering priorities but could also signal a more cautious national stance toward retail crypto infrastructure.
According to Chainalysis data, Australia ranks among the top 10 countries for crypto adoption, yet its regulatory environment has grown more conservative over the past year, particularly following reports of scams involving crypto ATMs in Melbourne and Sydney.
Industry experts suggest that a balanced approach to crypto ATM regulation could safeguard consumers without discouraging legitimate crypto usage. Angela Wensley, a blockchain policy analyst at RMIT University Blockchain Innovation Hub, told CoinDesk that the debate reflects a “tug-of-war between innovation and risk control.”
Crypto ATMs are one of the few tangible points where everyday people interact with blockchain technology, Wensley said. Over-regulating them could slow mainstream adoption just when institutional confidence is growing.
Still, government officials argue that tightening controls is necessary to curb the rising threat of financial crime. AUSTRAC has conducted multiple crackdowns on crypto ATMs, including transaction caps and enhanced identity checks rolled out in June 2025.
As the consultation period for the new crypto ATM regulation begins, stakeholders are watching closely to see whether AUSTRAC opts for restraint or restriction. The outcome will likely define the next phase of Australia’s digital asset policy and test its ability to balance security with innovation.
