Australia’s financial intelligence agency, AUSTRAC, has introduced new operating rules for crypto ATM operators amid a sharp rise in scam activity that especially targets older Australians. The new rules, announced on June 3, include stricter transaction limits, better customer due diligence, and clearer scam warnings, in a bid to check the misuse of crypto kiosks for fraudulent purposes.
Australia Tightens Crypto ATM Rules
Under the new regulations, crypto ATM providers are now restricted to a cash transaction limit of 5,000 Australian dollars (approx $3,250) for both deposits and withdrawals. While these limits currently apply only to ATM operators, AUSTRAC is urging Australian-based crypto exchanges that accept cash to consider adopting similar measures.
The changes come in after a three-month investigation by an AUSTRAC-led task force, launched in September, which analyzed data from nine leading crypto ATM providers. The probe revealed that users over the age of 50 accounted for nearly 72% of transaction value, and many victims of scams were women aged between 60 and 70.
AUSTRAC CEO Brendan Thomas said that the new rules are intended to disrupt criminal exploitation of these machines while protecting consumers and businesses. “These conditions are designed to help protect individuals from scams by deterring criminals from directing them to a crypto ATM, as well as to protect businesses from criminal exploitation,” Thomas said in a statement. He noted that the rules are not permanent and will be reviewed and refined in allegiance with law enforcement and industry stakeholders.
Australia currently sees close to 150,000 crypto ATM transactions per year, with an estimated $275 million in cash flowing through these kiosks, often for the purchase of Bitcoin, Ether, and Tether. With nearly 1,635 crypto ATMs nationwide like Localcoin operating 753, Coinflip 700, and Bitcoin Depot 182, Australia now ranks third globally in total ATMs after the US and Canada.
Even with these strict regulations, Australian Federal Police (AFP) has warned that crypto ATM scams remain significantly underreported. Between January 2024 and January 2025, the national cybercrime reporting portal, ReportCyber, received 150 unique scam reports involving crypto ATMs, with total losses exceeding AU$3.1 million ($2 million USD). AFP Commander Graeme Marshall believes the actual damage is far greater, citing unreported cases due to embarrassment, lack of awareness, or uncertainty about where to turn for help.
The most common scams linked to crypto ATMs in the past year were investment fraud (63 reports), extortion scams (35), and romance scams (24).
Also Read: Australia Appoints New Assistant Minister for Technology to Drive Cryptocurrency Regulation
