The Australian Transaction Reports and Analysis Centre (AUSTRAC) has announced new measures aimed at curbing criminal exploitation of crypto ATMs, which have proliferated across the country in recent years. Key among the changes is a $5,000 transaction cap per customer, alongside stricter identity verification, mandatory scam warnings, and heightened transaction monitoring requirements.
AUSTRAC Chief Executive Brendan Thomas said the measures are designed to protect Australians — particularly older individuals — from being manipulated by scammers.
Australians Losing Millions to Crypto ATM Scams
According to data from AUSTRAC and the Australian Federal Police (AFP), more than $3 million was lost to crypto ATM-related scams in the 12 months to January. Many of the victims were aged over 50, with women disproportionately affected.
In one case, an elderly man lost $1.4 million in a romance scam after being instructed to repeatedly withdraw funds and deposit them into crypto ATMs. Once converted into digital assets and transferred to anonymous wallets, the funds became nearly impossible to trace or recover.
Rapid Expansion Outpacing Regulation
Australia now has over 1,800 cryptocurrency ATMs — up from just 23 in 2019 — making it the third-highest country globally in terms of deployment, behind only the United States and Canada.
AUSTRAC estimates the machines facilitated approximately $275 million in cash-for-crypto transactions in the past year, with popular tokens like Bitcoin, Tether, and Ethereum dominating usage. The agency believes roughly 10% of this activity is linked to criminal conduct.
Older Australians Targeted
Regulators are particularly concerned about the demographic trends. Over 70% of crypto ATM transactions involve users aged 50 or older, with nearly a third coming from those in their 60s.
Convenience store workers have reported observing elderly customers making frequent deposits while being coached over the phone — a tactic commonly used by scammers impersonating government officials, employers, or romantic partners.
A Melbourne petrol station attendant told ABC he regularly sees customers reading instructions off their phones while feeding money into ATMs. These instructions often come from scam artists coercing victims into paying fictitious debts or fees using cryptocurrency.
A Simple Process Exploited
Crypto ATMs allow users to convert cash into digital currencies such as Bitcoin, and in some cases, convert crypto back into cash. While convenient, the ease of use also makes them vulnerable to abuse.
One victim, “Robert” (name changed), recounted how he unknowingly became a money mule after applying for a fake remote job. He was instructed to deposit cash into a crypto ATM using detailed instructions sent by his supposed employer.
Robert’s bank eventually flagged the suspicious activity, advised him to cancel his identity documents, and sever all contact.
Enforcement and Compliance Push
AUSTRAC recently revoked the registration of Harro’s Empires, a South Australia-based operator of four crypto ATMs, citing the risk that the machines could be used for criminal purposes.
The agency has also launched audits of ATM operators and is considering further regulatory changes. In 2023, it established a task force to assess crypto-related money laundering risks and coordinate responses with international partners.
Global Response and Legal Action
Crypto ATMs are facing growing regulatory scrutiny globally. The United Kingdom and Singapore have effectively banned their use, while U.S. authorities are pursuing legal action against major operators.
In Iowa, state officials are suing Bitcoin Depot and CoinFlip, alleging they failed to prevent scams and are seeking $20 million in damages on behalf of defrauded residents.
Thomas acknowledged that Australia’s existing laws are still catching up with the fast-evolving crypto landscape and has called for broader regulatory reforms.
Industry Pushback
Some in the crypto sector have criticised AUSTRAC’s approach, arguing that the new rules may punish legitimate users.
Paul Derham, chair of the Digital Economy Council of Australia (DECA), said many customers rely on crypto ATMs because banks restrict direct purchases of digital assets.
He questioned the blanket $5,000 transaction limit and advocated for a more tailored, risk-based system. While acknowledging that the machines can be exploited, Derham argued that other financial institutions also struggle with fraud.
The Road Ahead
With Australians — particularly older citizens — increasingly caught in the crossfire between convenience and crime, the future of crypto ATMs in the country remains uncertain.
Balancing innovation with consumer protection is likely to remain a key challenge for regulators as the digital currency landscape continues to evolve.
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