Those gleaming machines tucked into suburban shopping centres and city corners might look like regular ATMs, but they're actually fuelling a massive criminal enterprise. AUSTRAC estimates 85 per cent of the transactions sent by the top users of crypto ATMs are the proceeds of scams or money mule activity.
Home Affairs Minister Tony Burke has had enough. In a speech that's sending shockwaves through Australia's cryptocurrency scene, he's announced sweeping powers to crack down on these increasingly popular machines—and in some cases, ban them entirely.
The numbers are staggering. It is estimated that 99 per cent of crypto ATM transactions are cash deposits, which are high risk for money laundering. That means almost every transaction at these machines involves someone feeding in cash—precisely the kind of activity that makes authorities nervous.
In this article
What Exactly Are These Crypto ATMs?
If you've never heard of a crypto ATM, you're not alone. Bitcoin ATMs, or BTMs, are physical kiosks that facilitate transactions of Bitcoin in exchange for traditional currency or debit. Unlike the ATM at your local bank, these machines work completely differently.
BTMs connect to a Bitcoin wallet instead of a bank account, and transactions are processed on the blockchain. Essentially, users of such ATMs can feed in cash to receive crypto in digital wallets or obtain physical notes from token sales.
Think of it as a vending machine for digital money. You put in real cash, and out comes cryptocurrency that exists only on your phone or computer. The process is surprisingly simple, which is part of what makes these machines so attractive to both legitimate users and criminals.
Australia's Explosive Growth Problem
Here's where the story gets truly alarming. Australia has experienced explosive growth in crypto ATMs, and we're not talking about a gradual increase. Australia is in third spot with nearly 1,200, up from just 73 two years ago, and more are on the way.
To put this in perspective, three years ago there were 200 in operation, up from 23 six years ago. The growth has been so rapid that Australia has the highest number of CATMs in the region, and the third highest in the world.
This isn't just happening in Sydney and Melbourne. These machines have spread across the country, from regional shopping centres to busy city corners. The original article mentioned that according to Coin ATM Radar, there are over 500 in Sydney alone, with about 300 each in Melbourne and Brisbane.
'It is about legitimising the good actors and shutting out the bad—giving business certainty and consumers' confidence'
How Criminals Are Gaming the System
The criminal exploitation of these machines is sophisticated and concerning. In a statement last year, police outlined the laundering technique: illicit cash is put into an ATM in return for digital assets, which are then spun through many transactions until their origins are nearly impossible to trace.
But there's another layer to this criminal enterprise that particularly affects vulnerable communities. The original article revealed that international students and other visa holders are being targeted to sell, rent, or hand over bank account details, creating what authorities call 'mule accounts.'
These accounts become the vehicles for moving dirty money. Criminals approach students—often struggling financially—and offer them money to use their legitimate bank accounts for transferring funds. The students might not even realise they're participating in money laundering schemes.
What Are Money Mule Accounts?
Money mule accounts are legitimate bank accounts that criminals take control of, either by buying access from the account holder or by deceiving them into participating in money laundering schemes.
International students are often targeted because they may be financially vulnerable and unfamiliar with Australian financial crime laws.
The Government's Unprecedented Response
Burke's announcement represents one of the most significant crackdowns on financial crime technology in recent Australian history. Amendments to the Anti-Money Laundering/Counter Terror Financing Act will give the Australian Transaction Reports and Analysis Centre (AUSTRAC) the power to restrict or prohibit certain 'high-risk financial products, services and delivery channels, including crypto ATMs.'
This isn't just about tighter regulation—it's about giving authorities the power to ban these machines entirely if they pose too great a risk. The government is also updating systems to make it easier for banks to identify suspicious account activity linked to visa holders.
As Burke explained in his National Press Club speech, quoted in the original article: 'There are significant money laundering, terrorism financing and serious crime risks associated with crypto ATMs.'
What This Means for Legitimate Crypto Users
Not everyone using crypto ATMs is a criminal, of course. Many Australians have legitimate reasons for buying cryptocurrency, from investment to sending money overseas. These users are now caught in the crossfire of the government's crackdown.
The industry argues that crypto ATMs serve an important purpose. As one operator noted in the research, these machines 'boost financial inclusion by offering easy access to crypto.' For some people, particularly those without traditional bank accounts or those who prefer cash transactions, crypto ATMs provide a vital service.
However, the overwhelming criminal use of these machines means legitimate users may soon find their options severely limited. The government's new powers could result in many machines being shut down or subjected to much stricter identification and transaction limits.
The International Context
Australia isn't alone in grappling with crypto ATM crime, but our response is among the most dramatic globally. The rapid growth in these machines has caught regulators around the world off guard.
Internationally, authorities have identified similar patterns of criminal abuse. The technology that makes these machines convenient for users—the ability to conduct large cash transactions with minimal identification—is precisely what makes them attractive to money launderers.
Did you know?
Did you know?
The first cryptocurrency ATM in the world opened on October 29, 2013, in Vancouver, Canada. It took over a decade for the technology to become widespread, but the growth in Australia has been among the fastest globally.
Protecting Yourself from Crypto Scams
For seniors, the rise of crypto ATMs and the associated criminal activity represents yet another avenue for sophisticated scams. While you might never use a crypto ATM yourself, understanding how these scams work can help protect you and your family.
Be particularly wary of:
- Anyone asking you to withdraw cash and put it into a crypto ATM
- Scammers claiming you need to buy cryptocurrency to 'verify' your identity or 'secure' your bank account
- Offers from strangers to use your bank account for 'temporary' transactions
- Investment schemes that require you to buy cryptocurrency through ATMs
Remember, legitimate businesses and government agencies will never ask you to buy cryptocurrency or use crypto ATMs as part of resolving problems with your accounts or avoiding legal trouble.
Example Scenario
- The Gift Card Scam Evolution - Sarah, 67, received a call from someone claiming to be from her bank's fraud department. They told her someone had hacked her account and she needed to 'secure' her money by converting it to cryptocurrency at a nearby ATM. The scammer even offered to stay on the phone to 'guide' her through the process. Fortunately, Sarah recognised this as a scam—but this type of fraud is becoming increasingly sophisticated as criminals adapt to new technology.
The Road Ahead
The government's timeline for implementing these changes hasn't been fully announced, but the urgency in Burke's language suggests action will come quickly. AUSTRAC will need to develop the regulatory framework for identifying and potentially banning high-risk crypto ATMs.
For the industry, this represents a major challenge. Legitimate operators will need to demonstrate they can effectively prevent criminal use of their machines, likely through enhanced identification requirements and transaction monitoring.
The changes will also affect the broader cryptocurrency industry in Australia, as regulators take a more hands-on approach to digital asset businesses. As Burke noted in the original article: 'Our legislation for a new framework for digital asset business will extend existing financial services laws in a targeted way.'
What You Need to Know About the Crypto ATM Crackdown
- AUSTRAC will gain power to ban crypto ATMs deemed too high-risk
- 85 per cent of heavy crypto ATM users are linked to scams or money laundering
- Nearly 1,200 crypto ATMs operate across Australia, up from just 73 two years ago
- Criminals target international students to create 'mule accounts'
- Legitimate crypto users may face restricted access to these machines
- Never use a crypto ATM if someone instructs you to do so over the phone
Looking Forward: A Safer Financial Future
While the crackdown might inconvenience some legitimate cryptocurrency users, the scale of criminal abuse revealed by AUSTRAC's analysis makes government action inevitable. The statistics speak for themselves—when 99 per cent of transactions are cash deposits and 85 per cent of heavy users are linked to criminal activity, these machines have clearly strayed far from their intended purpose.
For most Australians, particularly seniors who are often targeted by sophisticated financial scams, this crackdown represents an important step toward a safer financial landscape. The government's willingness to take strong action against emerging criminal technologies sends a clear message that Australia won't tolerate digital innovation being hijacked by criminals.
The crypto ATM saga also highlights the importance of staying informed about new technologies and the risks they might present. As our financial world becomes increasingly digital, understanding these developments—even if we don't use them ourselves—helps us protect our families and communities.
What are your thoughts on this crackdown? Have you noticed these crypto ATMs in your local area, or do you have concerns about cryptocurrency-related scams? We'd love to hear your experiences and questions in the comments below.
Primary Source
https://au.news.yahoo.com/crackdown-crypto-atms-coming-094224900.html
Home Affairs Minister Tony Burke announces crackdown on crypto money laundering
Cited text: AUSTRAC estimates 85 per cent of the transactions sent by the top users of crypto ATMs are the proceeds of scams or money mule activity.
Excerpt: AUSTRAC estimates 85 per cent of the transactions sent by the top users of crypto ATMs are the proceeds of scams or money mule activity.
https://www.oberonreview.com.au/sto...an-crypto-atms-in-anti-money-laundering-push/
Home Affairs Minister Tony Burke announces crackdown on crypto money laundering
Cited text: It is estimated that 99 per cent of crypto ATM transactions are cash deposits, which are high risk for money laundering.
Excerpt: It is estimated that 99 per cent of crypto ATM transactions are cash deposits, which are high risk for money laundering.
https://www.oberonreview.com.au/sto...an-crypto-atms-in-anti-money-laundering-push/
Bitcoin ATMs: how to use them and how do they work? | Coinbase
Cited text: Bitcoin ATMs, or BTMs, are physical kiosks that facilitate transactions of Bitcoin in exchange for traditional currency or debit.
Excerpt: Bitcoin ATMs, or BTMs, are physical kiosks that facilitate transactions of Bitcoin in exchange for traditional currency or debit.
https://www.coinbase.com/en-au/lear...oin-atms-how-to-use-them-and-how-do-they-work
Bitcoin ATMs: how to use them and how do they work? | Coinbase
Cited text: BTMs connect to a Bitcoin wallet instead of a bank account, and transactions are processed on the blockchain.
Excerpt: BTMs connect to a Bitcoin wallet instead of a bank account, and transactions are processed on the blockchain.
https://www.coinbase.com/en-au/lear...oin-atms-how-to-use-them-and-how-do-they-work
Australia leads world market in crypto ATM growth as kiosks pour in | World News—Business Standard
Cited text: Users of such ATMs can feed in cash to receive crypto in digital wallets or obtain physical notes from token sales.
Excerpt: users of such ATMs can feed in cash to receive crypto in digital wallets or obtain physical notes from token sales.
https://www.business-standard.com/w...-growth-as-kiosks-pour-in-124090100626_1.html
Australia leads world market in crypto ATM growth as kiosks pour in | World News—Business Standard
Cited text: Australia is in third spot with nearly 1,200, up from just 73 two years ago, and more are on the way.
Excerpt: Australia is in third spot with nearly 1,200, up from just 73 two years ago, and more are on the way.
https://www.business-standard.com/w...-growth-as-kiosks-pour-in-124090100626_1.html
Home Affairs Minister Tony Burke announces crackdown on crypto money laundering
Cited text: Three years ago there were 200 in operation, up from 23 six years ago.
Excerpt: three years ago there were 200 in operation, up from 23 six years ago.
https://www.oberonreview.com.au/sto...an-crypto-atms-in-anti-money-laundering-push/
Home Affairs Minister Tony Burke announces crackdown on crypto money laundering
Cited text: 'Australia has the highest number of CATMs in the region, and the third highest in the world.'
Excerpt: Australia has the highest number of CATMs in the region, and the third highest in the world.
https://www.oberonreview.com.au/sto...an-crypto-atms-in-anti-money-laundering-push/
Australia leads world market in crypto ATM growth as kiosks pour in | World News—Business Standard
Cited text: In a statement last year, police outlined the laundering technique: illicit cash is put into an ATM in return for digital assets, which are then spun ...
Excerpt: In a statement last year, police outlined the laundering technique: illicit cash is put into an ATM in return for digital assets, which are then spun through many transactions until their origins are nearly impossible to trace.
https://www.business-standard.com/w...-growth-as-kiosks-pour-in-124090100626_1.html
Home Affairs Minister Tony Burke announces crackdown on crypto money laundering
Cited text: Amendments to the Anti-Money Laundering/Counter Terror Financing Act will give the Australian Transaction Reports and Analysis Centre (AUSTRAC) the po...
Excerpt: Amendments to the Anti-Money Laundering/Counter Terror Financing Act will give the Australian Transaction Reports and Analysis Centre (AUSTRAC) the power to restrict or prohibit certain 'high-risk financial products, services and delivery…
https://www.oberonreview.com.au/sto...an-crypto-atms-in-anti-money-laundering-push/
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