Australia Introduces New Crypto ATM Regulations Amid Increasing Scam Concerns

Australia’s national financial intelligence agency has introduced updated operational rules and transaction limits for crypto ATM operators, amidst rising concerns regarding scams associated with these kiosks.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is implementing a limit of 5,000 Australian dollars ($3,250) on cash deposits and withdrawals at crypto ATMs. Additional measures include scam warning signs, improved transaction monitoring, and heightened customer due diligence responsibilities, as stated in a June 3 press release shared with Cointelegraph.

Currently, these limits apply solely to crypto ATM providers; however, AUSTRAC anticipates that crypto exchanges in Australia will “consider adopting similar limits if they permit cash-based crypto transactions.”

AUSTRAC CEO Brendan Thomas remarked that these new regulations are not final and that the “effectiveness of these conditions” will be evaluated continuously and amended as necessary, in collaboration with law enforcement and ATM operators to address any questionable activities.

“These conditions aim to protect individuals from scams by discouraging criminals from directing them to a crypto ATM, as well as shielding businesses from being exploited,” he stated.

“Given the associated risks and damages, it is essential to ensure that the sector adheres to minimum standards and mitigates the criminal misuse of crypto ATMs.”

This regulatory action follows an investigation by an AUSTRAC task force that analyzed data from nine crypto ATM operators, revealing that the majority of users are over 50, accounting for nearly 72% of all transaction values.

Crypto ATMs, like this one in a Sydney shopping center, have also emerged in petrol stations, convenience stores, and various food outlets. Source: Coin ATM Radar

The task force was established last September to determine whether crypto ATMs were equipped with appropriate Anti-Money Laundering and counter-terrorism measures.

“It’s alarming that this demographic is overrepresented among customers using cash to buy cryptocurrency, and evidence points to many users aged 60-70 being victims of scams,” Thomas noted.

In Australia, nearly 150,000 crypto ATM transactions occur each year, with approximately $275 million transacted in cash for Bitcoin (BTC), Tether (USDT), and Ether (ETH), according to AUSTRAC.

Millions Lost to Crypto ATM Scams: Just the “Tip of the Iceberg”

The Australian Federal Police (AFP) reported on June 3 that between January 2024 and January 2025, the country’s online cybercrime reporting system, ReportCyber, received 150 individual reports of scams involving crypto ATMs.

Total losses exceeded 3.1 million Australian dollars ($2 million), which the AFP indicated “may just be the tip of the iceberg.”

Related: Australia’s financial watchdog to tighten regulations on inactive crypto exchanges

AFP Commander Graeme Marshall noted that many victims of crypto ATM scams remain unaware that they have been scammed, lack knowledge on how to report such incidents, or feel embarrassed about falling victim.

“Scammers utilize sophisticated techniques to extract funds from their targets. We encourage individuals to share their experiences with family and friends to raise awareness and prevent others from becoming victims,” he suggested.

While Australia initially had a slow uptake of crypto ATMs, adoption surged sharply towards the end of 2022 as private companies began to enter the market.

The nation has now established itself as the third-largest hub for crypto ATMs globally, and Coin ATM Radar data indicates that Australia currently hosts 1,819 ATMs, a significant increase from 67 in August 2022.

Cryptocurrencies, ATM, Australia, Scams, Money Laundering Australia now ranks third globally for the number of crypto ATMs, trailing only the US and Canada. Source: Coin ATM Radar