TLDR
- Australia now ranks third globally with over 2,000 active crypto ATMs.
- AUSTRAC wants power to ban entire categories of high‑risk crypto services.
- Seniors aged 50–70 make up 72% of transaction values through crypto ATMs.
- An estimated 85% of frequent users are linked to scams or illicit fund transfers.
Australia is moving to tighten control over its booming crypto ATM industry, which has grown from 23 machines in 2019 to over 2,000 today. A national survey found that 85% of frequent users were either fraud victims or involved in illegal fund transfers. With elderly users most at risk, authorities are now pushing for new laws that would let AUSTRAC restrict or ban high‑risk services entirely.
Crypto ATM Use Linked to Illicit Activity
Australia has become the world’s third-largest market for crypto ATMs, behind the United States and Canada. AUSTRAC has reported that the volume of transactions through these machines now exceeds 150,000 annually, with an estimated value of USD $275 million.
A survey conducted among frequent users revealed that a large majority—around 85%—had either fallen victim to scams or unknowingly facilitated the transfer of illicit funds. This growing misuse has alarmed authorities and triggered calls for stronger regulatory intervention.
The demographic most affected includes Australians aged 50 to 70, who account for nearly 72% of transaction values. Regulators say this age group is more likely to be targeted by scams and less likely to recognize suspicious activity.
AUSTRAC Seeks New Legal Powers
AUSTRAC, the Australian Transaction Reports and Analysis Centre, is seeking legislative amendments to allow it to take broader action against high‑risk crypto services. Under current rules, AUSTRAC can impose controls on individual operators. However, the proposed changes would enable it to restrict or ban entire categories of products.
“The new authority would allow faster action in response to emerging threats,” said AUSTRAC CEO Brendan Thomas in a statement. “We are seeing patterns of misuse that need a stronger regulatory framework.”
The proposed legislation is part of the government’s broader strategy to reduce financial crime and protect vulnerable populations, especially senior citizens. If passed, it could allow AUSTRAC to ban crypto ATMs deemed too risky, even if they already have standard Know Your Customer (KYC) procedures in place.
Existing Measures and Industry Response
Previous measures to control risks have included a cash deposit cap of AUD $5,000 and stronger identity verification at ATM terminals. Warning notices about common scams are also now mandatory at these machines.
Industry groups have responded cautiously. Some operators argue that most ATMs already follow strict compliance guidelines and that broader bans could hinder innovation. However, AUSTRAC insists that the focus is on crime prevention, not on curbing technological development.
Crypto industry bodies are urging regulators to work closely with service providers to avoid disrupting legitimate use. They argue that collaborative frameworks could maintain access while addressing risks more effectively.
International Alignment and Future Outlook
Australia’s move reflects a growing global focus on tightening oversight of cash-to-crypto services. Other countries are also reviewing regulations to limit the misuse of crypto ATMs for laundering or scams.
The proposed law would bring Australia’s approach more in line with international standards, ensuring that high‑risk channels are monitored more strictly. The government aims to use AUSTRAC’s expanded authority to create a safer environment for users and preserve the integrity of the financial system.
