.png){kind=logo}
Australia is moving swiftly to regulate cryptocurrency ATMs after a sharp rise in scams and illicit transactions. Reports from AUSTRAC and law enforcement show that these machines, which convert cash into crypto, have grown rapidly across the country. Regulators say this expansion has exposed vulnerable users, particularly the elderly, to greater financial risk.
Authorities have now capped cash deposits at AUD5,000 per transaction for many crypto ATMs. Operators must also apply stronger identity checks, display visible scam alerts, and report any suspicious behavior. AUSTRAC has formed a dedicated task force to monitor operators and enforce compliance.
Home Affairs Minister Tony Burke described cryptocurrency ATMs as “high-risk products.” He confirmed that upcoming legislation would allow AUSTRAC to restrict or even ban such devices if needed. A new AUSTRAC report revealed that 85% of large-scale ATM transactions were linked to fraud or money laundering schemes.
Crypto ATM in Australia have increased rapidly, with only 23 ATM six years ago, but now surpassing 2,000. Although this is an indication that the mainstream has been embraced, according to regulators, it also enables criminals to transfer money freely without being detected.
According to Burke, these devices are used as an instrument of organized crime and fraudsters, and the goal of the government is to keep consumers safe as well as to ensure that the financial system's integrity is not compromised.
Police reports indicate that crypto ATM fraud has already caused significant harm. About 150,000 transactions worth AUD275 million pass through these machines each year, with 99% involving cash deposits. In Tasmania, 15 victims lost AUD2.5 million combined, including one person who lost AUD750,000. The average victim was around 65 years old.
Many scams involve fake callers convincing victims to deposit money at crypto ATMs, which is then transferred overseas. Police and AUSTRAC have begun refusing license renewals for noncompliant operators and conducting targeted crackdowns. Yet, enforcement remains difficult as Australia now has between 1,600 and 1,800 active ATMs, many lacking proper transaction monitoring.
Once cash is converted to cryptocurrency, tracing the funds becomes complex. Criminals often move money through multiple wallets or send it to offshore platforms that do not cooperate with Australian authorities. That makes recovery efforts nearly impossible.
Regulators do not deny the fact that crypto ATMs can be used by legitimate users who need to use cash or can only access online banking. Nevertheless, their anonymity and speed have made them a leading issue for the financial watchdogs. The new bill that the government is going to introduce in Parliament in the near future is expected to see an increase in Know Your Customer (KYC) and Anti-Money Laundering (AML) checks of all operators.
Others propose a licensing system comparable to the traditional financial institutions. This may guarantee compliance standards of the operators before deployment. In the meantime, crypto supporters are alerting that the overly strict measures can restrict access to individuals without bank accounts.
The crackdown on crypto ATM in Australia is a significant change in the regulation of the digital asset. As the stricter cash limits, identity checks, and reporting standards are introduced to the operations of the post-AUSTRAC, the government tries to prevent scams and money laundering without compromising the safety of the consumers. The relocation is in the face of increased losses through fraud and abuse of these machines.
