Key Takeaways:
- Australia may give AUSTRAC authority to restrict or ban crypto ATMs deemed “high-risk” under new draft legislation.
- The country has rapidly expanded its crypto ATM footprint, growing from 67 machines in 2022 to over 2,000 in 2025.
- Operators argue that current KYC and security measures already ensure compliance and deter misuse.
Australia’s government is considering new legislation that would give its financial intelligence agency, AUSTRAC, the power to restrict or ban cryptocurrency ATMs.
Announced by Minister for Cybersecurity and Home Affairs Tony Burke, the proposal aims to let AUSTRAC act against “high-risk products,” including crypto ATMs, which authorities say pose money-laundering and tracing challenges.
Australia 🇦🇺 next to ban Crypto ATMs
— The Great Martis (@great_martis) October 16, 2025
Adoption to Abandonment in just a couple of years.
Won’t be long. pic.twitter.com/clcVQIhMdx
Burke stressed it wouldn’t automatically outlaw the machines but would provide flexibility to intervene when risks emerge.
Australia’s crypto ATM market has grown rapidly – from 67 machines in 2022 to over 2,000 today, making it the third-largest market globally.
Operators such as Localcoin, Coinflip, and Bitcoin Depot dominate the market.
Coinflip defended the industry, noting that all transactions require government-issued ID, while machines use surveillance and blockchain tracking tools to prevent scams.
The company argued that crypto ATMs serve as a vital bridge between digital and physical finance, especially as traditional ATM use declines and banks remain cautious toward digital assets.
The proposed law would grant AUSTRAC discretionary authority to regulate or prohibit high-risk financial products as needed.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: