New Measures to Curb Illicit Activities
Effective immediately, AUSTRAC has mandated a cap of AUD 5,000 (approximately USD 3,250) on cash deposits and withdrawals at cryptocurrency ATMs. Operators are now required to display prominent scam warnings, enhance transaction monitoring systems, and implement stricter customer identity verification processes. These regulations are currently applicable solely to crypto ATM providers, though AUSTRAC has indicated that digital currency exchanges accepting cash should consider adopting similar safeguards.
The decision follows a comprehensive investigation by AUSTRAC, which revealed that individuals aged over 50 account for nearly 72% of all transaction value at crypto ATMs. Notably, those between 60 and 70 years old are disproportionately affected by scams, often coerced into transferring funds under false pretences. In the past year alone, Australians have reported losses exceeding AUD 3.1 million due to crypto ATM-related fraud, encompassing investment scams, extortion, and romance fraud.
Rapid Expansion Raises Concerns
Australia has witnessed a significant surge in the number of crypto ATMs, with installations increasing from 67 in August 2022 to 1,819 by June 2025. This rapid growth positions Australia as the third-largest market for crypto ATMs globally, trailing only the United States and Canada. Leading operators include Localcoin, Coinflip, and Bitcoin Depot.
The proliferation of these machines, often located in easily accessible venues like petrol stations and convenience stores, has outpaced regulatory oversight, creating opportunities for misuse. AUSTRAC’s recent actions, including the refusal to renew the registration of a non-compliant operator, underscore the agency’s commitment to enforcing compliance and safeguarding consumers.
As the cryptocurrency landscape continues to evolve, AUSTRAC has emphasized that these regulations will be subject to ongoing review and adjustment in collaboration with law enforcement and industry stakeholders. The agency’s proactive stance reflects a broader effort to balance innovation in the financial sector with the imperative of consumer protection.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.