The Australian Federal Police have reported that people lost over 3.1 million Australian dollars (about $2 million) to scams involving crypto ATMs in the last year. This might just be the start of the problem.
To combat these scams, Australia’s financial intelligence agency has set new rules for crypto ATM operators. The Australian Transaction Reports and Analysis Centre (AUSTRAC) is putting a limit of 5,000 Australian dollars ($3,250) on cash deposits and withdrawals at these ATMs. They are also requiring operators to look for signs of scams, monitor transactions more closely, and do better checks on customers. This was announced in a press release on June 3.
Right now, these limits only apply to crypto ATM providers, but AUSTRAC suggests that crypto exchanges in Australia should think about similar limits for cash transactions.
AUSTRAC CEO Brendan Thomas said these rules are not final and will be reviewed regularly. The agency will work with law enforcement and ATM operators to tackle suspicious activities. He explained that the goal is to protect people from scams and keep businesses safe from criminal activities.
“In light of the risks and harms, we consider it absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”
The recent crackdown started after an AUSTRAC investigation looked at data from nine crypto ATM companies. They found that most users are over 50 years old and make up nearly 72% of all transaction values. The task force was created last September to check if these ATMs follow Anti-Money Laundering and counter-terrorism rules.
Crypto ATMs, such as this one pictured in a Sydney shopping center, have also cropped up in petrol stations, convenience stores and some food shops. Source: Coin ATM Radar
“It’s a big concern that so many older people are using cash to buy cryptocurrency, and many users aged 60 to 70 have been scammed,” said Thomas.
In Australia, there are about 150,000 crypto ATM transactions each year, with around $275 million spent in cash on Bitcoin, Tether, and Ether, according to AUSTRAC.
The Australian Federal Police (AFP) reported on June 3 that their online scam reporting system, ReportCyber, received 150 reports of scams involving crypto ATMs from January 2024 to January 2025. The total losses were over 3.1 million Australian dollars (about $2 million), which they think might be just a small part of the real losses.
AFP Commander Graeme Marshall mentioned that many people who were scammed don’t realize it, don’t know how to report it, or feel embarrassed. “Scammers use clever tricks to get money from people. We encourage everyone to share their stories with family and friends to help raise awareness and prevent others from being scammed,” he said.
Australia started slowly with crypto ATMs, but interest grew rapidly towards the end of 2022 as more companies entered the market. Now, Australia has the third-largest number of crypto ATMs in the world, after the US and Canada. According to Coin ATM Radar, there are currently 1,819 ATMs in Australia, up from just 67 in August 2022.
Australia has grown to have the world’s third-largest number of crypto ATMs, behind the US and Canada. Source: Coin ATM Radar
The main crypto ATM providers in Australia are Localcoin with 753 ATMs, Coinflip with 700 ATMs, and Bitcoin Depot with 182 ATMs.
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Source: Cointelegraph. Edited: Bernie S.