The Australian Transaction Reports and Analysis Centre (AUSTRAC), the nation’s financial intelligence agency, has implemented stringent new operating rules and transaction limits for crypto ATM operators. The latest development is in response to a surge in scams facilitated through cryptocurrency automated teller machines (ATMs).
This action follows a concerning report from the Australian Federal Police (AFP), which revealed that scam-related losses via these ATMs exceeded $3.1 million (approximately $2 million) over 12 months. Authorities fear this figure may represent only a fraction of the true extent of the problem.
Australia Imposes New Crypto ATM Regulations
New rules from AUSTRAC are now in place, limiting cash deposits and withdrawals at crypto ATMs to 5,000 Australian dollars (approximately $3,250). Additionally, operators must now display clear scam warnings, enhance their transaction monitoring, and conduct more thorough checks on customers.
Currently, these limits only affect crypto ATM companies. However, AUSTRAC wants Australian cryptocurrency exchanges to consider implementing similar limits if they accept cash for cryptocurrency.
Furthermore, AUSTRAC CEO Brendan Thomas stated that these rules can be changed. He said they will continue to monitor how well they work and adjust them as needed. The agency plans to collaborate with the police and ATM companies to identify and prevent any suspicious activity.
“It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60-70 year old users are victims of scam activity,” CEO Thomas states.
The leading crypto ATM companies in Australia include Localcoin (753 ATMs), Coinflip (700 ATMs), and Bitcoin Depot (182 machines). The new rules will directly impact these companies and they will need to adjust their operations accordingly.
Annually, Australia experiences approximately 150,000 crypto ATM transactions, with around $275 million in cash-based purchases of Bitcoin, Tether, and Ether flowing through these machines.
AFP Report Reveals Scam Surge
The AFP’s report confirmed the growing problem of scams linked to crypto ATMs. From January 2024 to January 2025, the ReportCyber system received 150 reports of these scams. Losses reported were more than 3.1 million Australian dollars ($2 million). Law enforcement thinks the real losses are likely higher.
Furthermore, AFP Commander Graeme Marshall stated that many victims of scams remain unaware of the deception, lack the knowledge to report it, or feel too ashamed to seek assistance.
Commander Marshall further commented, “Scammers frequently employ sophisticated tactics to extract money from individuals. We urge people to engage in conversations with their family and friends to increase awareness and prevent future scams.”
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