Australia rolls out new crypto ATM rules as feds flag rising scams

Australia’s national financial intelligence agency has rolled out new operating rules and transaction limits for crypto ATM operators, as federal police say scams through the kiosks are on the rise.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is enforcing a 5,000 Australian dollar ($3,250) limit on cash deposits and withdrawals oncrypto ATMs, scam warning signs, more robust transaction monitoring and enhanced customer due diligence obligations, the agency said in a June 3 press release shared with Cointelegraph.

Currently, the limits only apply to crypto ATM providers; however, AUSTRAC expectscrypto exchangesoperating in Australia to “consider imposing similar limits if they accept cash for crypto transactions.”

AUSTRAC CEO Brendan Thomas said the new rules are not set in stone, and the “effectiveness of these conditions” will remain under review and be adjusted if needed while the agency works with law enforcement and ATM providers to curb any suspicious activity.

“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 said.

The crackdown was triggered after an investigation by an AUSTRAC task force examined data from nine crypto ATM providers and found that most users are over 50 years of age and account for almost 72% of all transactions by value.

The task force was set up last September toinvestigate whether crypto ATMshad the proper Anti-Money Laundering and counter-terrorism checks in place.

“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,” Thomas said.

There are almost 150,000 crypto ATM transactions annually in Australia, with about $275 million moving through them using cash to buy BitcoinBTC$105,206BitcoinChange (24h)0.40%Market Cap$2.09TVolume (24h)$29.27BView More, TetherUSDT$1.00Tether USDtChange (24h)0.01%Market Cap$139.39BVolume (24h)$54.64BView Moreand EtherETH$2,593EthereumChange (24h)3.89%Market Cap$312.4BVolume (24h)$17.05BView More, according to AUSTRAC.

Millions lost to crypto ATM scams just “tip of the iceberg”

The Australian Federal Police (AFP)saidon 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.

It added that total losses exceeded 3.1 million Australian dollars ($2 million), which it said “may be just the tip of the iceberg.”

Related:Australia’s finance watchdog to crack down on dormant crypto exchanges

AFP Commander Graeme Marshall said many of those conned through crypto ATMs don’t realize they’re victims, don’t knowhow to reportthe scam or “feel embarrassed because they were scammed.”

“Scammers often use sophisticated tactics to elicit funds from victims. We would encourage people to share their stories with family and friends to raise awareness and help prevent others from falling victim,” he said.

Australia was a slow market for crypto ATMs, but adoptionincreased exponentially near the end of 2022after private firms began piling into the market.

The country is nowthe third-largest hubfor crypto ATMs, and Coin ATM Radardatashows Australia currently has 1,819 ATMs, up from 67 in August 2022.

Leading crypto ATM providers in AustraliaincludeLocalcoin, with 753 in its stable; Coinflip, with 700 ATMs; and Bitcoin Depot, with 182.

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