According to Cointelegraph, Australia's national financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has introduced new operational rules and transaction limits for cryptocurrency ATM operators. This move comes as federal police report an increase in scams conducted through these kiosks. AUSTRAC has set a limit of 5,000 Australian dollars ($3,250) on cash deposits and withdrawals at crypto ATMs, along with requirements for scam warning signs, enhanced transaction monitoring, and stricter customer due diligence obligations. These measures were announced in a press release on June 3.
Currently, these limits are applicable only to crypto ATM providers, but AUSTRAC anticipates that cryptocurrency exchanges in Australia may consider implementing similar restrictions if they accept cash for crypto transactions. AUSTRAC CEO Brendan Thomas emphasized that these rules are not permanent and will be reviewed and adjusted as necessary. The agency is collaborating with law enforcement and ATM providers to address suspicious activities. Thomas stated that the conditions aim to protect individuals from scams by deterring criminals from using crypto ATMs and safeguarding businesses from criminal exploitation. He stressed the importance of ensuring the sector meets minimum standards to reduce the misuse of crypto ATMs.
The initiative was prompted by an AUSTRAC task force investigation, which analyzed data from nine crypto ATM providers. The findings revealed that most users are over 50 years old, accounting for nearly 72% of all transactions by value. Crypto ATMs have become increasingly common in locations such as petrol stations, convenience stores, and food shops. The task force was established last September to assess whether crypto ATMs had adequate Anti-Money Laundering and counter-terrorism measures in place. Thomas expressed concern over the overrepresentation of older individuals using cash to purchase cryptocurrency, noting that many users aged 60-70 are victims of scam activities.
The Australian Federal Police (AFP) reported on June 3 that the country's online cybercrime reporting system, ReportCyber, received 150 unique reports of scams involving crypto ATMs between January 2024 and January 2025. Total losses exceeded 3.1 million Australian dollars ($2 million), which the AFP suggested might be just the beginning. AFP Commander Graeme Marshall highlighted that many victims are unaware of being scammed, unsure of how to report it, or embarrassed by the experience. He encouraged people to share their stories to raise awareness and prevent others from falling victim.
Australia's crypto ATM market was initially slow but saw significant growth towards the end of 2022 as private firms entered the market. The country now ranks as the third-largest hub for crypto ATMs, with Coin ATM Radar data indicating that Australia currently has 1,819 ATMs, up from 67 in August 2022. Leading providers include Localcoin with 753 ATMs, Coinflip with 700, and Bitcoin Depot with 182.
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