On March 29, 2025, Australia's financial crime agency (AUSTRAC) issued a stern warning to cryptocurrency ATM providers, having detected that many machines may be exploited for money laundering and fraud. With over 1,648 crypto ATMs in Australia – the highest number in the Asia-Pacific region, will this move clean up the market or push the crypto industry into a difficult situation?


AUSTRAC Detects "Concerning Signs"

AUSTRAC – the Australian Transaction Reports and Analysis Centre – reported that the crypto task force, established in December 2024, has detected "concerning trends and signs of unusual activity" related to cryptocurrency ATMs. These machines are suspected of supporting money laundering or fraud, particularly in scams targeting users. AUSTRAC CEO Brendan Thomas emphasized: "We want to ensure that crypto ATM providers have strong measures in place to minimize the risk of their machines being used for laundering dirty money or defrauding innocent people."


Crypto ATMs (also known as kiosks) are physical devices that allow users to buy and sell cryptocurrencies like Bitcoin using cash or cards, often not requiring strict identity verification (KYC) like traditional finance. This creates loopholes for criminals to exploit.


Task Force and Strict Regulations

AUSTRAC's task force, comprising regulatory experts, law enforcement, and intelligence, initially focused on ATMs but has expanded its scope to address compliance issues across the industry. According to Australia's Anti-Money Laundering and Counter-Terrorism Financing Act, all digital currency exchange (DCE) service providers, including ATMs, must register with AUSTRAC, perform KYC, monitor transactions, and submit Suspicious Matter Reports as well as cash transaction reports over 10,000 AUD.


Australia currently has 1,648 crypto ATMs – a significant increase from just 23 machines in 2019, according to Coin ATM Radar. Sydney alone has 348 machines, leading the Asia-Pacific region. This increase is accompanied by the risk of financial crime, forcing AUSTRAC to take action.


Global Trend: The US is also tightening regulations

Not only Australia, the US is also tightening control over crypto ATMs. Last month, Illinois Senator Dick Durbin proposed the Crypto ATM Fraud Prevention Act, requiring daily transaction limits and mandatory refunds for victims reporting fraud within 30 days. Nebraska also passed the Electronic Record Fraud Prevention Act, requiring fraud warnings and refund rights if victims report within 90 days. These moves aim to protect users, especially the elderly – a group often targeted in scams.


Impact on the Crypto Market


  • Bitcoin (~88,000 USD): The price is not significantly affected, but strict regulations may reduce transactions through ATMs, impacting short-term liquidity.


  • Crypto ATM Industry: Providers in Australia must upgrade KYC and monitoring, increasing operating costs but improving long-term credibility.

  • Investors: New regulations boost confidence in the system, reducing scam risks, especially as the US and Australia act together.



Conclusion: Necessary Steps for a Clean Market

AUSTRAC's warning regarding crypto ATMs in Australia is a strong signal: the cryptocurrency industry needs to be more transparent to survive. While this may exert short-term pressure, this move, along with regulations in the US, could clean up the market, protect investors, and promote sustainable adoption. Will Australia become a model for the Asia-Pacific region, or is this just the beginning of greater challenges? Time will tell.


Risk Warning: Investing in crypto carries high risks due to price volatility and regulatory gaps. Please consider carefully before participating.