Australia’s Home Affairs Minister Tony Burke is looking to give new powers to the country’s anti-money laundering watchdog to crack down on cryptocurrency ATMs.
Burke proposed measures to enable the Australian Transaction Reports and Analysis Center (AUSTRAC) to restrict or ban certain high-risk products, according to an announcement on Thursday.
The announcement did not describe specifically what the new powers would be, but said more details about the proposed changes would become available over time.
Crypto ATMs allow users to buy cryptocurrency by depositing cash or a bank card and having crypto delivered to a wallet. However, they are often used for nefarious activity. For example, scammers may advertise items for sale, direct their buyer to deposit money into a specific wallet, and then disappear.
There are 2,100 such terminals in Australia, according to data provided by Coin ATM Radar.
AUSTRAC specifically highlighted crypto ATMs as an example of a product it sought to curb, as they allow money launderers to convert cash into digital currency “that can be sent instantly and virtually anonymously across the globe.”
“This is a product that is multiplying rapidly – six years ago there were 23 machines in operation,” said AUSTRAC CEO Brendan Thomas. “Three years ago there were 200…That number has now risen to 2,000.”
AUSTRAC said the majority of high-value crypto ATM transactions were directly linked to fraud or moving money to high-risk jurisdictions, based on a sample of 90 of the most prolific users, of which 85% were directly linked to fraud or similar.
The watchdog introduced restrictions on the use of crypto ATMs earlier this year. sets a limit on cash deposits and withdrawals and requires operators to increase their due diligence.
Read more: New Zealand wants to ban crypto ATMs in anti-money laundering bid
