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Australia’s financial regulator AUSTRAC has introduced stringent new rules for crypto ATM operators to combat rising scams and enhance transaction security.
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The regulations impose a AU$5,000 limit on cash deposits and withdrawals, mandate improved customer identity verification, and require clear scam warnings at crypto ATMs nationwide.
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Brendan Thomas, AUSTRAC’s CEO, emphasized that individuals over 50 are disproportionately targeted, accounting for 72% of crypto ATM transactions, underscoring the need for these protective measures.
AUSTRAC enforces new crypto ATM rules in Australia to curb scams, limit cash transactions, and protect vulnerable users, especially those over 50.
AUSTRAC’s New Crypto ATM Regulations Aim to Curb Fraud and Enhance Consumer Protection
In response to a surge in crypto ATM-related scams, AUSTRAC has implemented comprehensive rules effective from 3rd June 2025. These regulations cap cash deposits and withdrawals at AU$5,000 (approximately $3,250) per transaction to reduce the risk of large-scale fraud. Operators are now required to conduct rigorous identity verification processes, aligning with anti-money laundering (AML) standards. Additionally, crypto ATM providers must display clear warnings about potential scams, aiming to educate and alert users at the point of transaction. This regulatory shift reflects AUSTRAC’s commitment to safeguarding both consumers and the broader financial system from illicit activities facilitated through crypto ATMs.
Targeting Vulnerable Demographics and Strengthening Law Enforcement Collaboration
AUSTRAC’s investigation, initiated in September 2024, revealed that older Australians, particularly those aged 60-70, are frequent victims of crypto ATM scams. This demographic accounts for a significant portion of the AU$275 million spent annually through these machines. Brendan Thomas highlighted that individuals over 50 represent 72% of crypto ATM usage, making them a prime target for fraudsters. To address this, AUSTRAC is collaborating closely with the Australian Federal Police (AFP) and ATM operators to enhance transaction monitoring and share intelligence. The AFP reported 150 scams linked to crypto ATMs between January 2024 and January 2025, resulting in losses exceeding AU$3.1 million. Authorities urge victims to report incidents to improve detection and prevention efforts.
Rapid Growth of Crypto ATMs in Australia Spurs Regulatory Action
The number of crypto ATMs in Australia has expanded dramatically, from just 67 in August 2022 to 1,819 by June 2025. Major operators such as Localcoin, Coinflip, and Bitcoin Depot have driven this growth, collectively managing over 1,600 machines nationwide. This rapid proliferation has increased accessibility to cryptocurrencies like Bitcoin, Tether, and Ether but has also heightened exposure to fraudulent schemes. AUSTRAC’s new rules aim to mitigate these risks by imposing stricter controls and encouraging crypto exchanges that accept cash deposits to adopt similar safeguards. This proactive approach is designed to maintain market integrity while fostering responsible crypto adoption across the country.
Regulatory Warnings and Industry Compliance Initiatives
Earlier in 2025, AUSTRAC issued formal warnings to crypto ATM providers regarding their role in facilitating money laundering and scam activities. The regulator emphasized the necessity for providers to implement robust compliance frameworks to detect and prevent illicit transactions. These warnings coincide with increased scrutiny of the crypto sector’s vulnerabilities and signal a broader regulatory trend towards tighter oversight. Industry stakeholders are now expected to enhance their due diligence processes, including Know Your Customer (KYC) protocols, transaction monitoring, and reporting suspicious activities. This alignment with global AML standards is critical to sustaining consumer confidence and supporting the long-term viability of crypto services in Australia.
Conclusion
AUSTRAC’s enforcement of new rules for crypto ATMs marks a significant step in protecting Australian consumers and businesses from crypto-related scams and financial crimes. By limiting cash transactions, strengthening identity checks, and collaborating with law enforcement, these measures address key vulnerabilities in the rapidly expanding crypto ATM ecosystem. The focus on safeguarding older users and promoting industry compliance underscores a balanced approach to regulation that prioritizes security without stifling innovation. As the crypto landscape evolves, ongoing vigilance and adaptive policies will be essential to maintaining a safe and transparent market environment.
