Australia Implements AU$5,000 Limit on Cryptocurrency ATM Transactions
Australia’s national financial intelligence agency, the Australian Transaction Reports and Analysis Centre (AUSTRAC), has announced new regulations targeting cryptocurrency ATMs, aimed at enhancing consumer protection and compliance with financial laws. The new rules include a cash deposit and withdrawal limit of AU$5,000, approximately US$3,250. ## New Restrictions for Crypto ATM Operators
In a statement released on Tuesday, AUSTRAC outlined several key changes that will affect how cryptocurrency ATM operators conduct their business. These changes encompass stricter customer due diligence requirements, mandatory scam warnings, and enhanced obligations for transaction monitoring. While these regulations primarily govern crypto ATM operations, AUSTRAC also encourages local digital currency exchanges to consider adopting similar limits for cash transactions involving cryptocurrency.
The introduction of these restrictions comes in response to concerns raised by AUSTRAC regarding the compliance of crypto ATMs with existing anti-money laundering (AML) regulations. The agency had previously established an internal task force tasked with identifying and addressing non-compliance among cryptocurrency ATM operators.
Demographics of ATM Users
Significant findings from AUSTRAC’s investigations revealed that individuals between the ages of 60 and 70 represent the most frequent users of crypto ATMs in Australia. AUSTRAC’s CEO, Brendan Thomas, expressed specific concern about this demographic being disproportionately affected by scams. “It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60–70-year-old users are victims of scam activity,” he stated.
The Growing Market of Crypto ATMs
Cryptocurrency ATMs operate similarly to traditional ATMs but allow users to exchange cash for cryptocurrency. This convenience, however, often comes with high transaction fees. According to AUSTRAC, the number of crypto ATMs in Australia has skyrocketed over the past two years—from just 23 in 2019 to 60 in 2022, reaching over 1,200 by 2024. Currently, there are more than 1,800 active crypto ATMs operating across the nation.
A recent report from Coin ATM Radar ranks Australia as the third-largest country in the world by the number of crypto ATM installations. The leading operators include Localcoin with 753 ATMs, Coinflip with 700, and Bitcoin Depot with 182. AUSTRAC estimates that nearly 150,000 transactions are conducted annually through these machines, totaling approximately AU$275 million in volume. Of these transactions, a staggering 99 percent involve cash deposits used to purchase popular cryptocurrencies such as Bitcoin, Tether, and Ethereum.
Continued Vigilance by AUSTRAC
In light of this rapid growth in the cryptocurrency ATM market, AUSTRAC emphasizes the importance of ongoing monitoring of this space. Brendan Thomas noted, “Crypto can be a high-risk investment, but people who consider and are willing to accept those risks may find it a convenient option. AUSTRAC will continue to monitor this space and take further action where we see harm occurring.”
With the implementation of these new regulations, AUSTRAC aims to strike a balance between facilitating the burgeoning crypto market while ensuring consumer safety and compliance with financial regulations.
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