Australia’s financial intelligence agency, AUSTRAC, has introduced a new set of regulations for cryptocurrency ATM operators amid increasing reports of fraud and scams.
Under the updated rules, each cash transaction at a crypto ATM will be capped at $5,000 AUD (approximately $3,250), and providers must implement stricter anti-money laundering (AML) monitoring.
Operators are now required to post fraud warning signs on machines and conduct more robust customer due diligence checks.
These changes come as a direct response to mounting concerns about the criminal misuse of crypto ATMs, particularly targeting vulnerable groups, such as older Australians.
Older Australians Targeted as Scam Losses Surpass $3 Million
Between January 2024 and January 2025, Australians reported more than AU$3.1 million in losses due to crypto ATM-related scams, with most victims aged between 60 and 70.
According to AUSTRAC’s task force, which investigated nine major ATM operators, nearly 72% of transactions by value came from individuals over 50 years old.
Many of these older users were unaware they had been scammed or felt too embarrassed to report the crime.
AUSTRAC CEO Brendan Thomas stated that these new rules aim to deter criminals from directing victims to these machines and to ensure that businesses are not exploited for illegal purposes.
The agency emphasized that these measures are subject to ongoing review and may be adjusted as the threat landscape evolves.
Australia Emerges as a Major Global Crypto ATM Hub
Australia has seen rapid growth in the adoption of cryptocurrency ATMs, becoming the third-largest market globally, trailing only the United States and Canada.
The number of ATMs in the country exploded from just 67 in August 2022 to nearly 1,820 as of June 2025.
These machines, now commonly found in shopping centers, petrol stations, and convenience stores, process around 150,000 transactions annually.
They successfully moved over AU$275 million in cash into cryptocurrencies like Bitcoin (BTC), Tether (USDT), and Ether (ETH).
Leading providers in the Australian market include Localcoin with 753 machines, Coinflip with 700, and Bitcoin Depot with 182, reflecting the sector’s rapid commercialization.
Also Read: Australian Federal Police Warn Of Crypto Text Scam Impersonating Binance
Law Enforcement and Regulators Collaborate to Protect Consumers
The rise in crypto ATM-related fraud has prompted collaboration between AUSTRAC, law enforcement, and ATM operators to develop more secure systems.
The Australian Federal Police (AFP) noted that 150 unique scam reports were submitted via ReportCyber during the one-year period, though they believe the actual number is likely much higher.
AFP Commander Graeme Marshall urged the public, especially older Australians, to share their experiences to raise awareness and prevent further victimization.
Meanwhile, AUSTRAC is encouraging crypto exchanges to voluntarily adopt similar transaction limits, even if they are not currently mandated.
The regulatory push marks a significant step toward improving security in Australia’s expanding crypto infrastructure while attempting to minimize risks for vulnerable users.
Also Read: Australian Authorities Intensify Crackdown on Fraudsters Impersonating Binance in Crypto Scams