Introduction
In response to an uptick in scams related to cryptocurrency, AUSTRAC, Australia’s primary agency for financial intelligence, has unveiled a set of operational guidelines along with transaction restrictions aimed specifically at crypto ATM operators. Effective from June 3, the new regulations impose a cap of 5,000 Australian dollars (approximately $3,250) on cash deposits and withdrawals through crypto ATMs.
New Regulations
In addition, operators are expected to:
- Display signs warning of potential scams
- Maintain heightened levels of transaction oversight
- Adhere to stringent customer verification processes
Scope of Measures
The newly established limits currently apply only to ATM providers but may extend to cryptocurrency exchanges that allow cash transactions in the future, according to AUSTRAC’s projections. Brendan Thomas, the CEO of AUSTRAC, underscored that these measures are provisional and will undergo periodic reviews to ensure they remain effective.
“We are cooperating with law enforcement and ATM operators to curb suspicious activities linked to these machines.” – Brendan Thomas
Intent and Background
Thomas articulated that the intention behind these regulations is to safeguard consumers by making it more challenging for criminals to exploit crypto ATMs while also protecting legitimate businesses from being used for illicit purposes. This regulatory push was sparked by an investigation from an AUSTRAC task force that analyzed the transaction data from nine crypto service providers.
The insights from the investigation revealed that an alarming 72% of transaction values came from users aged over 50, many of whom are reportedly falling victim to scams. This demographic shift raises red flags, especially for those within the 60-70 age bracket.
Fraud Trends and Reports
The Australian Federal Police (AFP) reported a concerning trend: from January 2024 to January 2025, their online fraud reporting portal, ReportCyber, documented 150 separate complaints associated with crypto ATMs, leading to total losses surpassing 3.1 million Australian dollars (around $2 million).
AFP Commander Graeme Marshall highlighted that numerous victims are often unaware they have been defrauded, may lack knowledge of how to report the incident, or feel embarrassed to speak out. He urged victims to share their experiences to help prevent others from similar fates.
Growth of Cryptocurrency in Australia
Australia, which initially adopted a cautious approach towards cryptocurrency, has witnessed a surge in its crypto market, particularly towards the end of 2022 as more private entities entered the landscape. Presently, Australia ranks as the third-largest country in terms of crypto ATMs, boasting 1,819 machines as of now, a dramatic increase from just 67 in August 2022.
Leading the pack are providers like Localcoin, Coinflip, and Bitcoin Depot, with 753, 700, and 182 ATMs respectively.
