AUSTRAC imposes a $3,250 cash limit on deposits and withdrawals at crypto ATMs
Australia’s financial intelligence agency has imposed new limits on cryptocurrency ATMs in a sweeping move to combat fraud and protect consumers.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) now requires all cash-based crypto transactions via ATMs to be capped at roughly USD 3,250 per transaction.
This is just one part of the government’s crackdown on financial crime and scam activities that are now taking full advantage of cryptocurrency kiosks all over Australia.
AUSTRAC CEO Brendan Thomas said crypto ATMs are increasingly being used for financial fraud. In response, AUSTRAC set a new transaction limit and refused to renew the license of one ATM operator for failing to report transaction volumes and comply with AML/CTF laws.
In addition to the limit, AUSTRAC announced tougher compliance rules. These would include the need for greater customer identity verification, compulsory scam warnings on cash machine screens, and enhanced transaction monitoring systems.
The new regulations apply to all registered DCEs running crypto ATMs, with AUSTRAC urging similar limits for all cash-for-crypto services.
Australia sees rapid growth in crypto ATMs
Over the past seven years, the number of crypto ATMs in Australia has risen sharply. AUSTRAC reveals that over 1,800 of these machines are in operation, a steep jump from the 23 bank machines in 2019.
This accelerated expansion has established Australia as the third biggest market for crypto kiosks worldwide after the United States of America and Canada.
But the boom has also raised grave concerns. Many of the transactions performed on these ATMs are related to criminal activities. Enforcement agencies have found that various scammers are increasingly using the machines, including those operating romance and fake investment schemes and remote access fraud — offenses that frequently victimize older Australians.
Austrac’s data analysis shows those aged 50-plus are particularly susceptible, making up 72% of all transactions by value. The 60- to 70-year-olds constitute almost 30% of this activity alone.
Scammers often trick victims into using these machines to send money. AUSTRAC’s CEO warns that anyone told to use a crypto ATM for payments should pause and consider it a red flag for a scam.
AUSTRAC establishes working group to strengthen supervision
To address the risks, AUSTRAC has initiated a task force to assess crypto ATM providers’ developments. The squad formed in late 2024 had carried out dozens of site visits, business evaluations, and outreach sessions to registered companies.
Any provider that does not then meet the enhanced, including adequate KYC (Know Your Customer) checks, transaction monitoring, and suspicious matter reporting requirements — will face enforcement action by the regulator, including deregistration.
Recently, AUSTRAC permanently barred a crypto ATM operator that refused to improve its compliance measures.
Australia’s action is among the harshest efforts anywhere to control the abuse of crypto ATMs. The new rules could serve as a blueprint for other countries wrestling with accommodating cryptocurrency growth while protecting consumers.
Regulators in the US, UK, and the EU have also singled crypto ATMs out as a fraud and money laundering risk. By doing so, Australia joined a growing club of governments seeking to balance innovation with protections.
AUSTRAC said it would like everyone to access a full range of financial services, including digital currency services, without fear of them being misused by criminals. Trust in these systems can be developed if the systems are secure, transparent, and not misused by criminals, the agency said.
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Original reporting: cryptopolitan.com
