Australian authorities are preparing to intensify their efforts against the misuse of cryptocurrency ATMs as part of a broader initiative to combat money laundering, terrorism financing, and other serious criminal activities.

The nation’s financial crime regulator, AUSTRAC, has reported that approximately 85% of transactions conducted by the leading users of crypto ATMs are linked to scams or are executed by “money mules”—individuals who illegally transfer funds on behalf of criminals.

In collaboration with law enforcement agencies, AUSTRAC discovered that when victims are prevented from making transactions through traditional financial institutions, perpetrators often turn to crypto ATMs as an alternative.

Federal government data indicates that a staggering 99% of transactions at these machines involve cash deposits, which are identified as high-risk for money laundering activities.

Home Affairs Minister Tony Burke is set to announce reforms today that will grant the AUSTRAC chief executive new authority to limit or ban specific high-risk products, services, or delivery mechanisms, including the use of cryptocurrency ATMs.

Additionally, he plans to introduce enhanced powers aimed at disrupting money laundering operations that utilize “mule accounts,” wherein criminals exploit legitimate bank accounts, which are often acquired from international students or other visa holders.

The government’s Visa Entitlement Verification Online Terms and Conditions will be changed to give financial institutions more access to visa information, to help them identify and close mule accounts.

Burke says the crypto reforms are about “legitimising the good actors and shutting out the bad” in the currency.

Over the past six years, the number of active crypto ATMs in Australia has increased more than 15-fold, from 23 to more than 1600 today.