Australia caps crypto ATM cash at A$5,000, and a pending bill would let AUSTRAC restrict the machines

Crypto ATMs are legal in Australia, which has about 2,000 machines. AUSTRAC limits cash deposits and withdrawals to A$5,000 and suspended Cryptolink’s registration in August 2026. A pending bill would let the AUSTRAC CEO restrict or prohibit high-risk mechanisms, with crypto ATMs as the named example.

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~2,000 Crypto ATMs, the largest number in Asia-Pacific and third-highest worldwide

96 Machines of Cryptolink suspended by AUSTRAC, August 2026

A$5,000 Limit on cash deposits and withdrawals at crypto ATMs

Operating a crypto ATM in Australia is legal. Australia has about 2,000 machines, the largest number in the Asia-Pacific region and the third-highest in the world.^1,2 Since June 2025 AUSTRAC has limited cash deposits and withdrawals at crypto ATMs to A$5,000.¹ On 9 August 2026 AUSTRAC (Australia's financial-crime regulator) suspended the Virtual Asset Service Provider registration of Cryptolink Pty Ltd for three months, taking its 96 machines offline. The suspension is due to run until 9 November 2026.^3,4 AUSTRAC gave the failure to lodge threshold transaction reports and to answer an information request, even after an enforceable undertaking, as grounds.³ The AML/CTF Amendment Bill 2026, introduced on 12 March 2026, would let the AUSTRAC CEO restrict or prohibit a reporting entity's use of a "high-risk mechanism" by legislative instrument. The explanatory materials use crypto ATMs as the example.⁶ We found no notice that the Bill has passed. GENERAL BYTES, as a hardware and software vendor, does not perform a licensable activity itself; the in-country operator of the machines must keep its AUSTRAC registration and meet its conditions.

Last updated: October 2026

Regulatory Framework and Its Evolution

Crypto ATM operators in Australia register with AUSTRAC as virtual asset service providers (VASPs) under the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act. The amended Act commenced for existing reporting entities on 31 March 2026.⁸ AUSTRAC's tightening has followed a clear sequence: in June 2025 the A$5,000 limit on cash deposits and withdrawals, together with scam-warning signs, stronger transaction monitoring and enhanced customer due diligence;¹ in October 2025 an enforceable undertaking and an A$56,340 infringement notice for Cryptolink, after AUSTRAC's Cryptocurrency Taskforce found late reporting and weak risk assessments;⁴ and in August 2026 the suspension of Cryptolink's registration.³

Date	What happened
Jun 2025	AUSTRAC imposes a A$5,000 limit on cash deposits and withdrawals at crypto ATMs, with stricter due diligence and scam-warning signs
Oct 2025	Cryptolink enters an enforceable undertaking with AUSTRAC and pays an A$56,340 infringement notice
Nov 2025	Corporations Amendment (Digital Assets Framework) Bill 2025 introduced
12 Mar 2026	AML/CTF Amendment Bill 2026 introduced: would let the AUSTRAC CEO restrict or prohibit “high-risk mechanisms”
31 Mar 2026	Amended AML/CTF Act commences for existing reporting entities
8 Apr 2026	Digital Assets Framework Act receives Royal Assent
9 Aug 2026	AUSTRAC suspends Cryptolink's VASP registration for three months; 96 machines go offline
9 Nov 2026	Cryptolink suspension scheduled to end
1 Jan 2027	Date on which the high-risk mechanism provisions would commence, if the Bill is passed
8 Apr 2027	Digital Assets Framework commences, followed by a six-month transition

Separately, the Corporations Amendment (Digital Assets Framework) Bill 2025 became law with Royal Assent on 8 April 2026. The framework commences on 8 April 2027, with a six-month transition. It requires operators of digital asset platforms and tokenised custody platforms to hold an Australian Financial Services Licence (AFSL).⁷ It sits alongside AUSTRAC's AML/CTF role rather than replacing it. The 1 July 2026 date in the AML/CTF reforms applies to Tranche 2 entities, not to crypto ATM operators.⁸

Registration and Reporting

The registration mechanics are those of an AUSTRAC-registered VASP: register, implement an AML/CTF programme, and lodge the required reports, including threshold transaction reports on large cash transactions. The Cryptolink suspension rested on missed threshold transaction reports and an unanswered information request, even though the operator had agreed an enforceable undertaking.³

The AML/CTF Amendment Bill 2026 would add a new Part 6B to the AML/CTF Act. The AUSTRAC CEO could restrict or prohibit a reporting entity from using a high-risk mechanism to provide designated services, if satisfied that the mechanism has caused or is likely to cause significant harm and that the instrument is necessary in the public interest. The CEO must generally consult for at least 30 days. An instrument made without consultation can last no more than six months, and one made after consultation no more than three years. Breaching a restriction or prohibition would be an offence. The provisions would commence on 1 January 2027, if the Bill is passed.⁶ The Bill was referred to the Parliamentary Joint Committee on Intelligence and Security, and reports in August 2026 describe it as still before Parliament.^2,5 The registration sits with the in-country operator of the machines, not with GENERAL BYTES as hardware and software vendor.

AML and KYC

Crypto ATM operators face the A$5,000 limit on cash deposits and withdrawals, enhanced customer due diligence and scam-warning signs at the machines.¹ AUSTRAC estimates that crypto ATMs handle about 150,000 transactions and over A$275 million a year, about 99% of them cash deposits. In a sample of 90 of the most prolific users, 85% were scam victims or money mules.^2,9 People aged 50 to 70 account for almost 72% of transactions by value.⁹

Banking

We found no official guidance on bank accounts for crypto ATM operators. Because AUSTRAC registration is a condition of operating, an operator's banking arrangements should be reviewed with counsel if its registration is restricted or suspended.

Outlook

The main item to follow is whether the AML/CTF Amendment Bill 2026 passes and whether AUSTRAC uses the new power against crypto ATMs, the example named in the explanatory materials.⁶ The Cryptolink suspension is scheduled to end on 9 November 2026, and AUSTRAC has not announced what follows. Other operators, including Coinflip and Localcoin, are active in the market.⁵ The Digital Assets Framework starts on 8 April 2027, after which digital asset platforms and tokenised custody platforms need an AFSL.⁷

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Sources and references

1. About 1,819 machines per CoinATMRadar; A$5,000 limit on cash deposits and withdrawals, scam-warning signs, stronger monitoring and due diligence (June 2025) — Cointelegraph
2. Crypto ATMs grew from 23 machines in 2019 to about 2,000, third-highest globally; AUSTRAC estimate of about 150,000 transactions and over $275m a year, about 99% cash deposits; AML/CTF Amendment Bill 2026 referred to the Parliamentary Joint Committee on Intelligence and Security (15 April 2026) — Grant Thornton Australia
3. Suspension of Cryptolink's registration from 9 August 2026 for three months; 96 machines; failure to lodge threshold transaction reports and to answer an information request despite an enforceable undertaking — AUSTRAC
4. Cryptolink: October 2025 enforceable undertaking after the Cryptocurrency Taskforce found late reporting and weak risk assessments; A$56,340 infringement notice; 96 machines mostly in Sydney, Melbourne and Brisbane — Cointelegraph (10 August 2026)
5. Bill still before Parliament; committee reviewed it; analysis framing the suspension as groundwork for sector-wide powers; operators Coinflip and Localcoin also in the market (opinion piece) — blockhead.co (14 August 2026)
6. AML/CTF Amendment Bill 2026: Part 6B, high-risk mechanism instruments, consultation of at least 30 days, maximum duration 6 months without and 3 years with consultation, offences and penalties, commencement of Schedule 1 on 1 January 2027, crypto ATM as the Explanatory Memorandum's example — Parliamentary Library Bills Digest
7. Digital Assets Framework: Royal Assent 8 April 2026, commencement 8 April 2027, six-month transition, AFSL for digital asset platforms and tokenised custody platforms — Gilbert + Tobin
8. Amended AML/CTF Act commenced 31 March 2026 for existing reporting entities and 1 July 2026 for Tranche 2 entities — Bright Law
9. AUSTRAC figures: 23 machines six years ago, 2,000 now; in a sample of 90 of the most prolific users, 85% were scam victims or money mules — AUSTRAC
10. Proposed powers to restrict or prohibit high-risk products and channels including crypto ATMs; Minister Tony Burke's National Press Club speech (15 October 2025) — The Nightly

Legal Disclaimer: This article by GENERAL BYTES is for informational purposes only and does not constitute formal legal, financial, or investment advice. AUSTRAC suspended the registration of the crypto ATM operator Cryptolink in August 2026, and legislation that could enable a sector-wide restriction is before Parliament; always consult specialised local legal counsel and confirm the current AUSTRAC status before considering any change to market activity.