Combatting Cryptocurrency Scams in Tasmania
In a significant effort to combat scams associated with cryptocurrency, Tasmania has joined the national initiative aimed at regulating the use of crypto ATMs. On Friday, authorities from Tasmania Police Cyber Investigations revealed that the top fifteen individuals utilizing crypto ATMs in the state had collectively lost a staggering 2.5 million Australian dollars (approximately $1.6 million) due to scams. Notably, over a third of this amount—around $592,000—was funneled directly into these ATMs as a result of scam-induced pressure.
National Crackdown on Crypto Scams
This alarming revelation follows recent announcements from Australia’s Federal Police and AUSTRAC, the nation’s financial intelligence body, which are spearheading a nationwide operation to stamp out the illicit activities surrounding crypto ATMs.
Detective Sergeant Paul Turner highlighted a concerning pattern among victims, stating many were coerced into using crypto ATMs by scammers, especially after traditional financial institutions raised red flags over their transactions. “These victims are often subjected to manipulation and intimidation, pressed into putting their money into fraudulent investment schemes, including so-called romance scams,” Turner reported.
He warned that these fraudulent activities can have severe and lasting repercussions, forcing individuals to rely on government pensions, liquidate assets, or postpone their retirement plans.
Turner cautioned potential victims: “If someone you don’t know personally insists that you send cash to a cryptocurrency ATM, especially under high-pressure circumstances or urgent demands, it is probably a scam.”
Regulatory Changes and Market Growth
This latest crackdown on crypto scams coincides with AUSTRAC’s introduction of tighter operating regulations and transaction limits for crypto ATM operators, which were enacted in June. The agency has also identified tackling crypto-related scams as a priority heading into 2025.
Additionally, the number of crypto ATMs in Tasmania has skyrocketed, jumping from just one in 2021 to a current total of 24, according to Coin ATM Radar. This growth reflects Australia’s position as the third-largest market for Bitcoin and other crypto ATMs globally, trailing only the U.S. and Canada. The country features over 1,890 crypto ATMs, a substantial increase from merely 67 in August 2022, with local operators including Localcoin, Coinflip, and Bitcoin Depot leading the way.
Global Efforts Against Crypto ATMs
Efforts to address the criminal use of crypto ATMs are not confined to Australia. Recently, New Zealand has enacted a ban on these devices and placed limits on international cash transfers to counter money laundering and organized crime. In a similar vein, Spokane, Washington, has implemented a city-wide ban on crypto ATMs as of June 16, driven by rising concerns over fraudulent activities linked to these kiosks. All existing machines will be removed, and the introduction of new kiosks will be prohibited in the area.
