Australia moves to target crypto ATMs under new AML powers
Australia is preparing to grant its anti-money laundering authority extended powers to regulate cryptocurrency ATMs following the government's findings regarding misuse.
Speaking at the National Press Club on Thursday, Home Affairs Minister Tony Burke proposed granting new powers to the Australian Transaction Reports and Analysis Centre (AUSTRAC) to restrict certain "high-risk products," including crypto ATMs, The Guardian reported.
Burke said that, while not every user of a crypto ATM is engaging in wrongdoing, the proportion of illicit use is concerning and difficult for authorities to trace. "I want AUSTRAC to have the power to restrict, or if it decides to prohibit, high-risk products, and be in no doubt crypto ATMs are a high-risk product," he said.
Burke painted a picture of rapid growth in crypto ATMs across Australia — from 23 machines six years ago to roughly 2,000 today — positioning Australia as third in the world for density of such machines, News.com.au reported. He warned that the prevalence of cash-to-crypto transactions makes tracing the funds difficult, and that AUSTRAC had linked crypto ATMs to money laundering, fraud, illicit drugs, and child exploitation.
AUSTRAC stated on Thursday that Burke's amendment would "give the AUSTRAC CEO additional options to reduce money laundering risks associated with high-risk products."
"[Crypto] transactions are becoming integrated into money laundering methodologies and crypto ATMs present even more risks due to the ability to turn cash into digital currency that can be sent instantly and virtually anonymously across the globe," said AUSTRAC CEO Brendan Thomas.
Australia isn't alone in tightening oversight of crypto ATMs. In July, New Zealand announced plans to ban crypto ATMs as part of its anti-money laundering efforts. In August, Illinois Governor JB Pritzker signed a bill requiring crypto kiosk and ATM operators to register with state regulators, maintain live customer support, and implement comprehensive anti-fraud and compliance programs.
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