Australia’s financial intelligence agency, AUSTRAC, is taking significant steps to combat the rising number of scams associated with crypto ATMs. In response to this growing concern, new regulations have been implemented to tighten controls and protect consumers from falling victim to fraudulent schemes.
Effective as of June 3rd, AUSTRAC has imposed restrictions on cash deposits and withdrawals at crypto ATMs, capping transactions at AU$5,000 (approximately US$3,250) per transaction. Additionally, operators of these ATMs are now required to display scam warnings, conduct more thorough transaction checks, and adhere to stringent customer verification procedures.
While these measures currently only apply to ATM providers, AUSTRAC has encouraged crypto exchanges that handle cash to consider implementing similar limits to safeguard their customers. AUSTRAC CEO Brendan Thomas emphasized that these changes are aimed at curbing criminal exploitation of crypto ATMs and ensuring the security of both users and businesses. The regulations will be continuously reviewed, with adjustments expected based on feedback from regulators and law enforcement agencies.
One of the driving factors behind these regulatory changes is the disproportionate impact of scams on older adults. An AUSTRAC task force discovered that individuals over the age of 50 accounted for nearly 75% of all crypto ATM transactions by value, with a significant portion falling between the ages of 60 and 70. This age group was identified as being particularly vulnerable to scams, prompting the agency to prioritize protective measures.
The task force, initiated in September 2023, was tasked with assessing compliance with anti-money laundering and counter-terrorism financing regulations among crypto ATM operators. The findings underscored the need for stronger oversight and consumer protection in the rapidly evolving crypto landscape.
Despite efforts to combat fraudulent activities, the Australian Federal Police (AFP) reported receiving 150 scam-related reports involving crypto ATMs between January 2024 and January 2025, resulting in losses exceeding AU$3.1 million (approximately US$2 million). However, the true extent of the issue may be greater, as many victims may be unaware that they have been targeted or may feel reluctant to report such incidents.
In light of these challenges, authorities are urging individuals to come forward and share their experiences to raise awareness and prevent further exploitation. The AFP emphasized the importance of reporting scams promptly to facilitate investigations and protect vulnerable populations from financial harm.
The proliferation of crypto ATMs in Australia, which now ranks third globally in terms of installations, has created a pressing need for enhanced regulatory oversight. The rapid adoption of these machines, coupled with the increasing incidence of scams, has prompted AUSTRAC to introduce stricter controls to mitigate risks and safeguard consumers.
While the AU$5,000 transaction limit may not eliminate all fraudulent activities, it is expected to deter scammers from coercing victims into large one-time transactions. Crypto ATMs serve as crucial access points to digital assets, especially for individuals who prefer cash transactions or may lack familiarity with online platforms. As such, these machines remain a prime target for fraudulent activities, underscoring the importance of ongoing vigilance and regulatory vigilance.
Looking ahead, the impact of these regulatory changes on scam rates and the broader crypto ATM market in Australia will become clearer in the coming months. As the industry continues to evolve, the message from authorities is clear: as crypto adoption grows, safeguards must be strengthened to protect consumers and uphold the integrity of the financial system.