Australia pushes to grant regulators authority to ban 'virtual asset ATMs'

The Australian government plans to grant its financial intelligence agency the authority to restrict or ban virtual asset (cryptocurrency) automated teller machines (ATMs) to strengthen anti-money laundering measures.

On the 15th (local time), according to Cointelegraph, Tony Burke, Australia’s Minister for Cybersecurity and Home Affairs, said in a National Press Club speech that "a bill is being prepared to give the Australian Transaction Reports and Analysis Centre (AUSTRAC) the power to restrict or ban high-risk financial products." Burke said, "Not all users of virtual asset ATMs cause problems, but at present it is difficult to trace illicit funds, which is a big problem."

This move comes after concerns about money laundering and criminal misuse have grown with the recent surge in cryptocurrency ATMs in Australia. Since the end of 2022, private companies have entered the market and ATM deployment has rapidly increased; 2008 machines are currently installed, ranking third in the world after the United States and Canada.

More than half of cryptocurrency ATMs in Australia are operated by three companies—Localcoin, Coinflip, and Bitcoin Depot. Coinflip said, "ATM operations already require strict customer identification (KYC) procedures and submission of government-issued ID," and explained, "blockchain analysis and real-time fraud alert systems operate before every transaction."

However, the government is not seeking an outright ban on virtual asset ATMs. Burke explained, "Instead of the government directly ordering a ban, it is giving regulators the authority to ban them," calling it "a measure to respond flexibly to the emergence of new technologies."