Australia is preparing regulations that could change the cryptocurrency landscape on the continent. Cybersecurity Minister Tony Burke has introduced a bill giving AUSTRAC (the Australian Financial Intelligence Agency) the power to restrict or ban the activities of cryptocurrency ATMs. Reason? Increasing risk of money laundering and difficulties in tracing illegal transactions.
The boom that no one expected
Burke doesn’t beat around the bush: regular ATMs can also be used to launder money, but in the case of cryptocurrency ATMs, authorities have a much more difficult time tracking illicit funds.
I’m not saying that every user is a criminal, but proportionately we have a significant problem here in an area that is much more difficult for us to track
– said the minister during his speech at the National Press Club.
So just like with cash. Not every cash user is a criminal, but criminals mainly use cash. Unfortunately, this twisted logic is likely to screw up all Australian cryptocurrency ATM users. But where do the Australian government’s concerns really come from? From the scale.
As recently as August 2022, Australia had only 67 cryptocurrency ATMs. Today? Over 2,000 devices, making the country the third largest crypto ATM market in the world. The explosion occurred at the end of 2022 when private companies entered the market en masse. The leaders are Localcoin (868 ATMs), Coinflip (682) and Bitcoin Depot (267).
Operators counter: we have security
Coinflip, one of the main players, counters: the regulations already exist. Each transaction requires KYC verification with an ID document. ATMs are equipped with cameras, real-time blockchain monitoring and fraud warnings. The company argues that crypto ATMs are a bridge between the physical and digital worlds, especially important when traditional ATMs disappear and banks block access to digital assets.
Optional permissions instead of prohibition
AUSTRAC has already tightened regulations – new transaction limits were introduced in June. But now Burke wants to go further. Interestingly, the government will not impose a specific course of action or recommend a complete ban, because such an approach could result in a legal battle. Instead, AUSTRAC will be given an optional tool: the power to restrict or prohibit crypto ATM activity at its discretion.
Will Australia stifle innovation in the name of safety or find a happy medium between control and market development? Operators count on common sense, regulators – on effectiveness. And the Market Square? He observes situations with bated breath, especially the Australian one.
