Australia Moves to Tighten Oversight on Crypto ATMs Amid Fraud Concerns

Australia is ramping up regulation of cryptocurrency ATMs, with the Australian Transaction Reports and Analysis Centre (AUSTRAC) poised to gain expanded powers to restrict or even ban high-risk crypto services. The move comes amid mounting fears of fraud, money laundering, and financial scams linked to the rapid growth of crypto ATMs across the country.

In just five years, Australia’s crypto ATM count has skyrocketed from about 23 machines in 2019 to over 2,000 today—making it the world’s third-largest crypto ATM market after the United States and Canada. According to AUSTRAC, approximately 150,000 transactions worth an estimated US$275 million occur annually through these machines. Alarmingly, a recent survey revealed that around 85 % of users were either scam victims or unknowingly aiding illicit transactions. Seniors between 50 and 70 years old represent nearly 72 % of the total transaction value, making them especially vulnerable to exploitation.

Previous AUSTRAC interventions included capping cash deposits at AUD 5,000, enforcing enhanced Know-Your-Customer (KYC) procedures, and requiring scam warnings on ATM interfaces. The proposed legislation goes further by granting AUSTRAC authority to regulate entire categories of high-risk crypto products rather than individual operators.

AUSTRAC CEO Brendan Thomas emphasized that these new powers will enable faster responses to evolving threats, including the ability to impose complete bans on problematic crypto ATM services. Regulators argue the measures aim to protect consumers and the financial system, not hinder innovation.

Industry advocates, however, warn that excessive restrictions could stifle legitimate crypto use, noting that most operators already comply with KYC and anti-money laundering standards. Still, as global regulators intensify scrutiny of cash-to-crypto channels, Australia’s enhanced oversight signals a firm commitment to curbing fraud, protecting vulnerable users, and reinforcing financial integrity.