Global: Australia Introduces New Rules for Crypto ATMs Amid Surge in Scam Activity

Australia’s financial intelligence agency has introduced tighter regulations for cryptocurrency ATM operators as part of a broader push to address rising scams and criminal misuse of digital assets.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) on June 3 announced a new set of compliance requirements for crypto ATM providers, including a cash transaction limit of AU$5,000 (approx. US$3,250) for both deposits and withdrawals. These rules also mandate stronger customer due diligence, enhanced transaction monitoring, and the display of scam warnings at ATM locations.

The move follows a warning from the Australian Federal Police, which reported that losses linked to crypto ATM scams exceeded AU$3.1 million (US$2 million) over a 12-month period—an amount officials believe may significantly understate the true scale of the problem.

“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,” said AUSTRAC CEO Brendan Thomas.

Thomas noted that the rules are part of a dynamic framework that may evolve further based on ongoing reviews and feedback from law enforcement and ATM operators. While the new limits apply specifically to ATM operators, AUSTRAC is encouraging crypto exchanges that accept cash to adopt similar restrictions to strengthen consumer protection.

The regulatory action stems from a task force investigation launched in September 2024, which examined data from nine crypto ATM providers. Findings revealed that users aged 50 and above made up nearly 72% of total transaction value, raising concerns about the demographic’s vulnerability to scams.

“It is a huge concern that people in this demographic are overrepresented in cash-based crypto purchases, and many aged 60 to 70 appear to be victims of scam activity,” Thomas said.

Crypto ATMs have become increasingly visible across Australia, with around 150,000 annual transactions processing an estimated AU$275 million in cash-to-crypto exchanges. The machines are commonly located in shopping malls, petrol stations, and convenience stores.

Authorities view the new measures as critical to safeguarding Australia’s financial system and enhancing anti-money laundering (AML) and counter-terrorism financing (CTF) oversight in the fast-evolving crypto space.