Australia is tightening its grip on crypto-related financial crime. AUSTRAC, the country's financial intelligence agency, has introduced a new limit of AUD 3,250 (approx. USD 2,160) for all cash deposits and withdrawals made via cryptocurrency ATMs.
The move is part of a broader effort to protect consumers and curb fraudulent activity, particularly the abuse of crypto kiosks by scammers.
Fighting Fraud and Money Laundering via Crypto ATMs
According to AUSTRAC CEO Brendan Thomas, crypto ATMs have increasingly become tools for scammers to launder money and deceive victims. In response, AUSTRAC not only imposed a transaction cap, but also revoked the license of a provider who failed to report transaction volumes and violated anti-money laundering (AML) regulations.
The agency is also introducing stricter compliance rules, including:
š¹ Enhanced identity verification (KYC)
š¹ Mandatory on-screen scam warnings
š¹ Advanced transaction monitoring systems
Crypto ATM Explosion in Australia Raises Red Flags
Australia has seen a rapid expansion of crypto ATMsāfrom just 23 in 2019 to over 1,800 machines in 2024, making it the third-largest market for crypto kiosks after the US and Canada.
But this boom comes with a dark side: many transactions are linked to criminal activity, including romance scams, fake investment schemes, and remote access fraud. Older Australians are especially at riskāpeople over 50 account for 72% of transaction value, while those aged 60ā70 make up nearly 30%.
AUSTRAC warns:
āIf someone tells you to use a crypto ATM to make a payment, consider it a red flag for fraud.ā
AUSTRAC Launches Oversight Taskforce
To strengthen oversight, AUSTRAC has established a taskforce to audit crypto ATM providers. Since late 2024, the team has conducted dozens of site visits, compliance reviews, and awareness sessions with registered businesses.
Providers who fail to meet the updated requirementsāincluding proper KYC controls, transaction monitoring, and suspicious activity reportingārisk deregistration and enforcement actions. One operator has already been permanently banned for noncompliance.
Australia Leads in Regulating Crypto ATMs
AUSTRAC made it clear: the goal isn't to restrict access to modern financial tools, but to ensure these services are safe, transparent, and not exploited by criminals. The agency hopes the new measures will boost public trust in crypto infrastructure.
With this move, Australia becomes one of the most proactive nations in regulating crypto ATMs, and its approach could serve as a model for other countries. Regulators in the US, UK, and EU have also flagged crypto kiosks as potential hotspots for fraud and money laundering.
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