Australia sets limits on crypto ATM use amid rising scam concerns – Crypto News – Crypto News
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Australia sets limits on crypto ATM use amid rising scam concerns Australia sets limits on crypto ATM use amid rising scam concerns

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Australia sets limits on crypto ATM use amid rising scam concerns – Crypto News

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2 months ago

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Australia’s financial intelligence agency is placing tighter controls on crypto ATMs in response to a growing number of scams, as reported by Cointelegraph.

As of June 3rd, the Australian Transaction Reports and Analysis Centre (AUSTRAC) introduced new rules that cap cash deposits and withdrawals at AU$5,000 (about US$3,250) per transaction. The new rules also require crypto ATM operators to put up scam warnings, carry out stronger transaction checks, and follow stricter customer verification steps.

The measures currently apply only to ATM providers, but AUSTRAC has urged crypto exchanges that handle cash to consider applying similar limits.

AUSTRAC CEO Brendan Thomas said these changes are meant to limit criminal use of crypto ATMs and protect both users and businesses. The rules will remain under review, and adjustments could be made depending on what regulators and law enforcement learn over time.

“These steps are in place to help prevent scammers from pushing people to use crypto ATMs,” Thomas said. “We also want to make sure businesses aren’t left open to abuse by criminal groups.”

Older adults hit the hardest

The policy shift comes after an AUSTRAC task force looked into nine crypto ATM providers. The review found that people over 50 made up nearly three-quarters of all crypto ATM transactions by value. Many were between 60 and 70 years old, a group the agency said was at higher risk of falling for scams.

“It’s troubling to see older Australians being targeted this way,” Thomas said. “We need to ensure safeguards are in place.”

The task force was launched in September 2023 to examine whether crypto ATM operators were complying with anti-money laundering and counter-terrorism financing rules.

Millions lost, but real impact may be higher

The Australian Federal Police (AFP) also weighed in on June 3. Between January 2024 and January 2025, its cybercrime unit received 150 reports tied to scams involving crypto ATMs. Losses from these reports totalled over AU$3.1 million (around US$2 million), but the AFP believes that figure only reflects a portion of the problem.

“Many victims don’t even know they’ve been scammed,” said AFP Commander Graeme Marshall. “Some are embarrassed. Others don’t know how to report what happened. That makes it hard to get a full picture.”

He encouraged people to speak up and share their experiences with others. “Awareness is a big part of stopping these scams,” he added.

A fast-growing market

While Australia was slow to adopt crypto ATMs at first, use of these machines picked up quickly after private companies entered the space in late 2022. The country now ranks third in the world for crypto ATM installations.

Data from Coin ATM Radar shows there are now 1,819 crypto ATMs across Australia—up from just 67 in August 2022. Bitcoin, Ether, and Tether are among the most commonly bought tokens.

Top operators in the market include Localcoin, which runs 753 machines; Coinflip, with 700; and Bitcoin Depot, with 182.

A growing need for stronger oversight

The sharp rise in adoption, combined with rising scam cases, has pushed regulators to act. AUSTRAC’s new rules show the agency is trying to balance crypto access with stronger safety measures. While the AU$5,000 limit won’t stop all scams, authorities say it may reduce the chances that scammers push victims toward large one-time transactions.

Crypto ATMs remain one of the few physical points of access to crypto, especially for users who prefer cash or are unfamiliar with online platforms. That makes them an easy target for fraud—especially for older adults who may be less aware of digital risks.

The coming months will show how the rules affect both the scam rate and the broader crypto ATM market in Australia. For now, the message from officials is clear: safeguards must grow as adoption rises.

(Photo by Claudette Wicks)

See also: SEC drops charges against Binance, closing major case

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Tags: crypto, cryptocurrency, cybersecurity

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