Australia implements new crypto ATM regulations as the federal government warns of escalating scams
According to the Australian Federal Police, scam losses from cryptocurrency ATMs exceeded 3.1 million Australian dollars ($2 million) during a 12-month period, which “may be just the tip of the iceberg.”
Australia’s national financial intelligence agency has issued new operating guidelines and transaction restrictions for cryptocurrency ATM operators as federal police report an increase in scams through the kiosks.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) has imposed a $ 5,000 (AUD) limit on cash deposits and withdrawals from cryptocurrency ATMs, as well as scam warning signs, more robust transaction monitoring, and enhanced customer due diligence obligations, according to a press release shared with Cointelegraph on June 3.
Currently, the limits only apply to crypto ATM operators; however, AUSTRAC anticipates that crypto exchanges in Australia would “consider imposing similar limits if they accept cash for crypto transactions.”
AUSTRAC CEO Brendan Thomas stated that the new restrictions are not final, and that the “effectiveness of these conditions” will be reviewed and amended as appropriate. At the same time, the agency collaborates with law enforcement and ATM operators to prevent suspicious conduct.
“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,” the official said.
The crackdown was prompted when an AUSTRAC task team evaluated data from nine cryptocurrency ATM operators and discovered that the majority of users are over 50 years old and account for nearly 72% of all transactions by value.
The task force was formed last September to assess whether crypto ATMs had enough anti-money laundering and counter-terrorism measures in place.
“It is a huge concern that people in this demographic are over-represented 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,” according to Thomas.
According to AUSTRAC, over 150,000 crypto ATM transactions occur in Australia each year.
Millions lost to crypto ATM scams are just the “tip of the iceberg.”
The Australian Federal Police (AFP) announced on June 3 that the country’s online cybercrime reporting system, ReportCyber, received 150 unique reports of crypto ATM fraud between January 2024 and January 2025.
It also stated that the total losses approached 3.1 million Australian dollars ($2 million), which “may be just the tip of the iceberg.”
According to AFP Commander Graeme Marshall, many people who are duped by cryptocurrency ATMs are unaware they are victims, do not know how to report the scam, or “feel embarrassed because they were scammed.”
“Scammers frequently employ complex strategies to obtain monies from victims. “We would encourage people to share their stories with family and friends to raise awareness and help prevent others from becoming victims,” he said.
Australia was a slow market for crypto ATMs, but adoption rose dramatically around the end of 2022 when private enterprises entered the market. Australia is now the third-largest hub for cryptocurrency ATMs, with Coin ATM Radar data showing 1,819 ATMs, up from 67 in August 2022. Localcoin, with 753 ATMs, Coinflip, with 700 ATMs, and Bitcoin Depot, with 182, are among Australia’s leading crypto ATM providers.
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