(AUSTRALIA) Australian banks will get new tools to fight crypto-linked scams that have been hitting international students, after the government moved on October 17, 2025 to expand enforcement powers and tighten controls on high-risk financial channels. Home Affairs Minister Tony Burke has proposed legislation that would grant AUSTRAC new authority to restrict or ban high-risk products, including certain crypto ATMs, and allow banks to check a customer’s visa status through the government’s Visa Entitlement Verification Online (VEVO) system.
The push follows a sharp rise in cryptocurrency terminals across the country and an alarming link to fraud and money laundering. Australia had just 23 crypto ATMs six years ago and now has more than 2,000, one of the highest rates globally. AUSTRAC, the financial intelligence agency, reports that 99% of crypto ATM use involves cash deposits and estimates that about 85% is tied to scams or money mules—people paid to move stolen funds through their accounts.
According to analysis by VisaVerge.com, banks have warned for months that these terminals have become fast cash-out points for criminal networks that target students with temporary visas and limited local support.
Expanded AUSTRAC powers and how they would work
Under the plan, AUSTRAC would be able to act quickly against emerging threats without waiting for lengthy regulatory changes. Possible actions could include:
- Imposing conditions on crypto ATMs.
- Setting transaction caps.
- Ordering temporary suspensions if risks spike.
AUSTRAC CEO Brendan Thomas said the new measures would help the agency respond to fast-moving schemes that exploit cash-heavy devices and cross-border flows. The government says the aim is to protect consumers while cutting off paths used for laundering.
“The new measures would help the agency respond to fast-moving schemes that exploit cash-heavy devices and cross-border flows.” — AUSTRAC CEO Brendan Thomas
Policy powers, safeguards, and timing
Minister Burke’s proposal, being introduced to Parliament, would establish a framework for AUSTRAC to curb or prohibit “high-risk products and services” where there is clear evidence of harm, with crypto ATMs among the first targets.
Key features and safeguards described by officials:
- Use of powers would be targeted, time-limited, and subject to review.
- Any visa-check capability for banks would be case-based, not a blanket access.
- Privacy safeguards, audit logs, and strict staff access rules are expected.
- Banks must show a clear fraud or financial crime reason for each VEVO check.
The government has not set an implementation date, but agencies and banks are preparing internal processes so they can move once the law takes effect.
The Australian Banking Association (ABA) has backed the approach, arguing that tightening controls on crypto ATMs will help the “on and off ramp” where cash meets digital assets — a key choke point for organized crime. Banks stress the changes are intended to prevent criminal conversion of stolen funds into cryptocurrency and back again, not to stop lawful crypto activity.
VEVO access: purpose and limits
Banks would gain conditional access to visa status checks through VEVO, allowing them to confirm whether a customer named in fraud reports still holds a valid visa or has left the country.
Intended uses and controls:
- Targeted checks to spot and close dormant “mule accounts” that criminals keep alive for months.
- Expansion of existing Home Affairs practice that allows approved organizations to verify immigration status, now extending to banks involved in fraud investigations.
- Access limited to fraud or financial crime investigations, with processes to protect privacy.
The Department of Home Affairs emphasizes VEVO is designed to confirm a person’s visa status and conditions securely; official VEVO information is available here: VEVO – Check visa details and conditions.
Impact on students and common scam tactics
International students have been frequent targets of crypto-linked scams that mix fear, urgency, and technical tricks. Common tactics include:
- Fake immigration calls claiming a visa breach and demanding immediate payment at a crypto ATM.
- Bogus investment pitches promising quick returns.
- Offers of paid “account support” that turn a student’s bank account into a laundering channel.
Students with limited local networks can be more vulnerable to these schemes, especially soon after arrival.
Practical advice for students
Officials and banks advise students to follow these steps to reduce risk:
- Never let anyone use your bank account or open one for a third party.
- Do not send money after pressure calls about visas or fines — real agencies don’t demand crypto payments.
- Avoid cash deposits into crypto ATMs on behalf of someone else.
- Report suspicious activity immediately to your bank, and also contact the Australian Federal Police (AFP) or the National Anti-Scam Centre (NASC).
How banks and agencies will respond
For students and education providers, the headline change is that banks will have more tools to shut down mule networks faster. Measures banks can take:
- Freeze accounts tied to criminal flows.
- File more detailed reports to AUSTRAC.
- Use VEVO checks to locate accounts at risk when a student’s location changes.
AUSTRAC’s data-driven approach aims to flag suspicious patterns—such as clustered cash deposits to crypto ATMs followed by transfers offshore—so banks and police can intervene sooner. Faster detection could:
- Reduce the dwell time of stolen funds in the banking system.
- Make it harder for criminal rings to scale operations.
- Help protect victims abroad who are pressured to send money that is converted to crypto in Australia.
Questions, stakeholder concerns, and next steps
There are practical questions ahead and active scrutiny from different groups:
- Consumer groups will monitor how AUSTRAC defines “high-risk”, and whether restrictions are proportionate and transparent.
- Crypto industry players will seek clarity on thresholds for action, appeals processes, and treatment of legitimate users who rely on compliant exchanges.
- Banks will need to train staff on visa checks, privacy rules, and scam typologies.
- Universities may expand student briefings during orientation.
The legislative process will determine the timeline. Once introduced, the bill will go through debate, possible committee review, and votes in both chambers. Banks and AUSTRAC have signaled they can implement changes soon after passage, with phased rollouts for systems handling VEVO checks and monitoring settings for crypto ATMs.
For now, the government’s message is that the measures are targeted, not a broad crackdown on technology. The focus is on the points where scams and laundering most often occur—cash-to-crypto terminals and mule accounts—and on giving agencies the power to move at the speed of criminal change. As AUSTRAC’s Thomas noted, the risk landscape shifts quickly; fixed rules alone can fall behind.
If enacted as planned, the measures could reshape how Australia tackles high-volume fraud tied to digital assets, while offering extra protection to students who come to study and work, then find themselves in the crosshairs of organized scams.
This Article in a Nutshell
The Australian government introduced legislation on October 17, 2025 to strengthen AUSTRAC’s ability to tackle crypto-linked scams by allowing the agency to restrict or ban high-risk products such as certain crypto ATMs and permitting banks conditional access to VEVO for targeted visa checks during fraud investigations. Crypto ATMs have ballooned from 23 to over 2,000 in six years, and AUSTRAC reports 99% of their use involves cash deposits, with about 85% linked to scams or money mules. Proposed measures emphasize targeted, time-limited actions, privacy safeguards, audit logs, and staff access controls. The Australian Banking Association supports the move, saying tighter controls address the cash-to-crypto “on and off ramp” exploited by organized crime. If enacted, banks could freeze mule accounts faster, file richer AUSTRAC reports, and reduce the dwell time of stolen funds, offering greater protection for international students vulnerable to fraud. Consumer groups, the crypto industry, banks, and universities will monitor implementation details, appeals processes, and proportionality as the bill proceeds through Parliament.
