Australia has introduced new restrictions on crypto ATMs after a wave of scams led to millions in losses. Authorities are now taking serious action to prevent further damage as criminals exploit cash-based crypto services to target vulnerable users, particularly seniors.
On June 3, the Australian Transaction Reports and Analysis Centre (AUSTRAC), the nation’s financial intelligence agency, announced a set of new rules for crypto ATM operators. The crackdown follows growing concerns from both AUSTRAC and the Australian Federal Police (AFP) over the increasing use of these machines for fraud.
New Crypto ATM Limits Introduced
Under the new AUSTRAC guidelines, all crypto ATM providers in Australia must enforce a strict limit of 5,000 Australian dollars (around $3,250 USD) for both cash deposits and withdrawals. Operators must also implement enhanced fraud detection and customer verification procedures. Warning signs at kiosks, more thorough transaction monitoring, and tighter customer due diligence will now become standard.
The rules currently apply only to physical ATM providers, but AUSTRAC is encouraging crypto exchanges that accept cash to adopt similar policies voluntarily.
Brendan Thomas, AUSTRAC’s CEO, emphasized that the move is aimed at protecting both customers and businesses. He described the changes as part of a broader effort to stop scammers from directing people, often older Australians, to use crypto ATMs as part of fraudulent schemes.
“In light of the risks and harms, we consider it absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs,” Thomas said.
He also noted that these conditions are not final and will be adjusted as needed, depending on the effectiveness of the policies and ongoing collaboration with law enforcement and ATM operators.
Scam Victims Are Mostly Aged Over 50
The decision to tighten regulations followed a major investigation launched by an AUSTRAC-led task force in September 2024. The task force reviewed data from nine crypto ATM providers and found that users over the age of 50 accounted for nearly 72% of all transaction volume. Alarmingly, many of these users were aged between 60 and 70, a group identified as particularly vulnerable to scam activity.
Brendan Thomas expressed concern that these demographics are being specifically targeted by scammers. The common tactic involves tricking individuals into withdrawing large amounts of cash and depositing it into a crypto ATM to purchase Bitcoin, Tether, or Ether. The digital assets are then transferred directly to the scammer.
AUSTRAC estimates that about $275 million worth of crypto is transacted annually through Australia’s crypto ATMs. With roughly 150,000 transactions each year, it’s a significant sector in the local crypto ecosystem.
$2 Million Lost to ATM Scams And Rising
The AFP also released new data on June 3, revealing the growing scope of the problem. Between January 2024 and January 2025, the national cybercrime reporting platform, ReportCyber, received 150 unique complaints involving scams tied to crypto ATMs. The total losses recorded exceed 3.1 million Australian dollars (about $2 million USD).
However, authorities believe this is only a fraction of the real damage. AFP Commander Graeme Marshall noted that many victims don’t realize they’ve been scammed or feel too embarrassed to report it.
“Scammers often use sophisticated tactics to elicit funds from victims,” Marshall said. “We would encourage people to share their stories with family and friends to raise awareness and help prevent others from falling victim.”
The AFP believes the actual number of cases and financial losses is significantly higher than reported, describing the known scams as potentially “just the tip of the iceberg.”
Australia Becomes a Crypto ATM Hotspot
Crypto ATMs have seen a surge in adoption in Australia since late 2022, when private companies began aggressively rolling out machines nationwide. As of June 2025, Australia ranks third globally for the number of operational crypto ATMs, trailing only the United States and Canada.
According to Coin ATM Radar, Australia now hosts 1,819 crypto ATMs—a massive increase from just 67 in August 2022. Leading operators in the country include Localcoin with 753 machines, CoinFlip with 700, and Bitcoin Depot with 182.
This rapid growth reflects the rising interest in digital currencies among Australians, but it has also created opportunities for fraudsters.
Looking Ahead: A Call for Vigilance
Australia’s latest move marks a clear shift toward stricter oversight of cash-based crypto activity. While digital currencies promise financial freedom and innovation, they also come with new risks, especially for older citizens unfamiliar with the technology.
The government’s efforts show a growing recognition that crypto services must evolve to meet the same anti-money laundering (AML) and consumer protection standards as traditional financial institutions. By capping cash transactions and reinforcing ID checks, AUSTRAC hopes to reduce the misuse of crypto ATMs by bad actors.
As law enforcement continues to investigate and adapt, users are being urged to stay alert, educate themselves about scams, and report any suspicious activity.
Crypto is here to stay, but with great innovation comes great responsibility. Australia’s latest crackdown is a reminder that regulation and awareness must go hand-in-hand to protect the financial well-being of its citizens.
