Australia’s financial intelligence agency, AUSTRAC, is set to receive sweeping new powers to restrict or ban entire categories of crypto-related services, marking the most significant expansion of its authority since the rise of digital assets.
The proposed legislation, backed by Home Affairs Minister Tony Burke, would allow AUSTRAC’s CEO to act swiftly against high-risk products, services, or delivery channels without requiring lengthy regulatory procedures.
AUSTRAC Targets Rising Crypto ATM Abuse
The move comes amid mounting evidence that cryptocurrency ATMs are increasingly being exploited for scams and money laundering. According to AUSTRAC data, these machines process about 150,000 transactions annually, valued at approximately $275 million.
Alarmingly, 85% of high-volume transactions have been linked to fraudulent activity or “money mule” schemes, where victims are tricked into transferring illicit funds abroad.
Brendan Thomas, AUSTRAC’s Chief Executive, said the agency must be able to respond faster to emerging threats. “We’re seeing misuse on a scale that demands stronger action,” he said. “This framework would let us act before the harm spreads.” The agency’s Crypto Taskforce found that many scam-linked transfers flow to high-risk jurisdictions, with much of the activity tied to organized crime networks.
Older Australians Most at Risk
Authorities highlighted that Australians aged 50 to 70 account for nearly 72% of total crypto ATM transaction value, making them the most frequent, and most vulnerable, users. AUSTRAC officials said many in this age group fall prey to sophisticated online fraudsters posing as legitimate investors or government officials.
The number of crypto ATMs in Australia has skyrocketed from just 23 machines six years ago to over 2,000 today, amplifying both access and exposure to scams. If passed, the new amendment would empower AUSTRAC to suspend or outlaw specific crypto products or channels when risks become “unacceptable.”
Thomas said the additional powers would “equip AUSTRAC to better protect the community” as criminals continue to exploit digital finance’s anonymity and speed.
