Australia Implements New Crypto ATM Regulations Amid Rising Scam Concerns

June 3, 2025 – Australia: In a decisive move to combat the increasing number of scams associated with cryptocurrency ATMs, Australia’s national financial intelligence agency, AUSTRAC (Australian Transaction Reports and Analysis Centre), has announced a set of new operating rules and transaction limits for crypto ATM operators. This initiative comes in response to alarming reports from the Australian Federal Police (AFP) indicating that scam losses related to these kiosks have surpassed 3.1 million Australian dollars (approximately $2 million) within a year—a figure they suggest may represent only the beginning of a larger issue.

New Regulations Introduced

In a press release issued on June 3, AUSTRAC revealed that it would impose a limit of 5,000 Australian dollars ($3,250) on cash deposits and withdrawals at crypto ATMs. Additionally, the agency will introduce requirements for enhanced transaction monitoring, more rigorous customer due diligence, and identification of scam warning signs for each transaction.

Currently, these limitations are specifically targeted at crypto ATM providers, but AUSTRAC has advised that cryptocurrency exchanges operating within Australia should also consider implementing similar cash transaction limits.

AUSTRAC CEO Brendan Thomas emphasized the importance of these regulations, stating, “The conditions are designed to help protect individuals from scams by deterring criminals from directing them to a crypto ATM, as well as to protect businesses from criminal exploitation.” He further noted that the effectiveness of these rules would be continuously reviewed and adjusted as needed, indicating a commitment to dynamic oversight of the crypto ATM landscape.

Investigation Insights

This regulatory overhaul was prompted by the findings of an AUSTRAC task force, which had been examining data from nine different crypto ATM providers. The investigation revealed that a majority of users engaging with these machines are over the age of 50, accounting for almost 72% of all transaction values. The data raised concerns about the vulnerability of this demographic, particularly individuals aged 60-70, who have been identified as frequent victims of scams.

“It’s a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency,” Thomas remarked, underscoring the need for protective measures.

Rise of Crypto ATM Usage in Australia

Despite a slow start in the cryptocurrency ATM market, Australia has seen a significant increase in adoption since late 2022, with private firms rapidly entering the sector. Currently, the country boasts a total of 1,819 cryptocurrency ATMs, a marked rise from just 67 ATMs in August 2022, making it the third-largest hub for crypto ATMs globally after the United States and Canada.

Leading ATM providers such as Localcoin, Coinflip, and Bitcoin Depot dominate the Australian market, offering hundreds of machines across various locations, including shopping centers, petrol stations, and convenience stores.

Concern Over Scams

The AFP reported that between January 2024 and January 2025, their online cybercrime reporting platform, ReportCyber, received 150 unique reports of scams involving crypto ATMs. The losses incurred due to these scams have raised serious alarm, with the AFP stating that the reported figures “may be just the tip of the iceberg.”

AFP Commander Graeme Marshall highlighted the psychological barriers victims often face. Many do not recognize they have been scammed and feel embarrassed to speak out or report their experiences. He urged the public to share their stories with friends and relatives to raise awareness and help prevent further victimization.

Conclusion

As Australia navigates through the challenges posed by the burgeoning cryptocurrency market, these new regulations aim to instill greater security and trust in crypto ATMs. By imposing transaction limits and enhancing oversight, AUSTRAC seeks to deter criminal activities and protect consumers from scams that have increasingly affected the nation’s vulnerable populations. The ongoing evaluation of these conditions will be crucial in addressing the evolving landscape of cryptocurrency transactions in Australia.

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