- A new $5,000 AUD cash limit has been introduced on crypto ATM transactions.
- Seniors (50+) are the primary scam victims, making up most ATM activity.
- Australia now has the 3rd most crypto ATMs globally, after the US and Canada.
Australia is tightening control over crypto ATMs following a sharp rise in scam-related fraud, primarily targeting older citizens. The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced a $5,000 AUD (approx. $3,250 USD) limit on cash deposits and withdrawals at crypto ATMs, effective immediately. This move aims to reduce the misuse of these machines by scammers.
AUSTRAC Responds to Senior-Focused Scam Epidemic
The crackdown follows a detailed task force investigation that discovered users aged 50+ made up 72% of the total transaction volume at these machines. Many of them, especially those in their 60s and 70s, were found to be victims of organized scams.
AUSTRAC CEO Brendan Thomas emphasized the urgency:
“We consider it necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”
Along with the cash limit, AUSTRAC is requiring crypto ATM operators to introduce stricter identity verification, robust transaction monitoring, and clearer scam warning messages for users.
Though these restrictions currently target ATM providers, AUSTRAC has encouraged crypto exchanges accepting cash to implement similar measures voluntarily.
Rising Fraud Losses Raise Alarm
The Australian Federal Police (AFP) reported over 150 scam cases involving crypto ATMs between January 2024 and January 2025, with losses exceeding $3.1 million AUD. However, authorities believe the true figure is likely much higher, given the embarrassment and lack of awareness among victims.
Commander Graeme Marshall of the AFP warned that:
“Many people don’t know they’ve been scammed, or feel too ashamed to report it.”
He urged the public to talk openly about these scams to prevent others from falling into the same traps.
Despite being a slow adopter initially, Australia now ranks third globally for the number of crypto ATMs, with 1,819 active kiosks, up from just 67 in 2022. These machines are now commonly found in shopping centers, petrol stations, and convenience stores.
Leading operators include Localcoin (753 ATMs), Coinflip (700), and Bitcoin Depot (182).
AUSTRAC has said that the efficacy of these new restrictions will be assessed from time to time. It aims to find a balance between digital finance innovation and safeguarding vulnerable users against financial abuse.
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