Australia’s national financial intelligence agency would have the power to restrict or ban crypto ATMs under draft legislation from the country’s minister for cybersecurity and home affairs, Tony Burke.
Burke said during a speech at the National Press Club on Thursday that the draft legislation would give the Australian Transaction Reports and Analysis Centre (AUSTRAC) the ability to restrict or prohibit “high-risk products,” which include crypto ATMs.
While regular bank-run ATMs are also used for scams and illegal activities, Burke said that in the case of crypto ATMs, authorities are having limited success in policing and tracking down illicit funds and are concerned they present a money-laundering risk.
Minister for Cybersecurity and Home Affairs Tony Burke is drafting legislation to allow AUSTRAC to ban or restrict crypto ATMs. Source: YouTubeAustralia was initially a slow market for crypto ATMs, but adoption increased exponentially near the end of 2022 after private companies began piling into the market, and the country is now the third-largest hub for crypto ATMs, with 2,008, up from 67 in August 2022.
Crypto ATM provider argues there are already rules in place
More than half the crypto ATMs in Australia are operated by three providers: Localcoin, with 868 in its stable; Coinflip, with 682 ATMs; and Bitcoin Depot, with 267.
Most of the crypto ATMs in Australia are operated by three companies. Source: Coin ATM RadarIn a statement to Cointelegraph, a Coinflip spokesperson said that crypto ATMs are already subject to strict rules and Know Your Customer verification, which includes submitting valid government-issued identification before conducting any transaction.
AUSTRAC has previously led several crackdowns on crypto ATMs, and in June, it rolled out new operating rules and transaction limits.
Machines also have other safety measures
Coinflip said the machines have cameras, pre-transaction monitoring via blockchain analytics and real-time scam warnings to help curb bad actors.
Related: New Zealand bans crypto ATMs in crackdown on criminal cash conversions
“Crypto ATMs are an important bridge between the physical and digital world, taking cryptocurrency out of the cloud and into the physical world using a familiar experience,” the spokesperson said.
New powers will be optional
Burke said the government won’t be pushing for an outright ban on the machines or recommending a course of action for AUSTRAC because it might result in a “legal challenge.”
Still, he intends to give “them the power to be able to restrict or ban those devices,” so the agency has the tools to police new technology as it decides.
“I’m not sure what the next thing is going to be, and there will be times when AUSTRAC may decide on something that doesn’t quite fit that definition, but is similar to do they want to ban or do they want to regulate?” Burke said.
“How do they want to deal with this? Are there ways of actually avoiding the problem? That’s why they’ll be able to have this power with respect to high-risk products,” he added.
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Source: https://cointelegraph.com/news/australia-austrac-crypto-atm-regulation-draft-law?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
