Australia Tightens Regulations on Crypto ATM Operators to Combat Scams and Money Laundering
Australia has implemented stricter operating conditions and cash transaction limits for crypto ATM providers in an effort to crack down on scams and improve compliance with anti-money laundering regulations. These new measures come as part of a broader enforcement initiative by the Australian Transaction Reports and Analysis Centre (AUSTRAC) following an investigation into the use of crypto ATMs across the country.
According to a press release issued by AUSTRAC on June 3, operators of crypto ATMs are now required to enforce a cash deposit and withdrawal limit of 5,000 Australian dollars (approximately $3,250). Additionally, operators must prominently display warning messages at their machines to alert users about potential fraudulent activities. The aim of these new regulations is to protect individuals from falling victim to scams and prevent businesses from being exploited by criminal elements.
AUSTRAC CEO Brendan Thomas emphasized the importance of these measures, stating that they are necessary to ensure the sector meets minimum standards and reduces the risk of crypto ATMs being misused for illicit purposes. The agency has also mandated that ATM providers conduct more stringent customer checks and enhance their transaction monitoring systems to detect suspicious activities.
The task force set up by AUSTRAC to investigate crypto ATM usage found that individuals over the age of 50 accounted for a significant portion of all transactions, with those aged 60 to 70 making up a substantial portion. In response to its findings, AUSTRAC has refused to renew the registration of one operator, Harro’s Empires, due to ongoing risks of misuse.
In collaboration with the Australian Federal Police-led Joint Policing Cybercrime Coordination Centre (JPC3), AUSTRAC has developed educational materials to be placed near ATMs to educate users about common scam tactics, warning signs, and how to report suspicious activities. The agency has also warned that digital currency exchange providers failing to meet their obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act could face similar consequences.
The Australian Federal Police reported 150 cases of scam-related incidents involving crypto ATMs between January 2024 and January 2025, resulting in losses exceeding 3.1 million Australian dollars. Authorities believe that the actual number of cases may be higher, as many victims may be unaware they have been defrauded or may be hesitant to come forward.
As of now, Australia is home to over 1,800 crypto ATMs, a significant increase from just 23 machines in 2019. These machines facilitate nearly 150,000 transactions annually, moving an estimated $275 million in cash. The primary assets purchased through these ATMs are Bitcoin, Tether, and Ether.
The new regulations imposed by AUSTRAC aim to enhance the integrity of the crypto ATM sector in Australia and protect individuals and businesses from falling victim to scams and financial crimes. By implementing stricter controls and monitoring measures, authorities hope to mitigate the risks associated with the misuse of crypto ATMs and safeguard the interests of all stakeholders involved in the cryptocurrency ecosystem.