Australia Imposes 5,000 Dollar Limit on Crypto ATM Transactions to Combat Scams

Australia has implemented new regulations for crypto ATM operators, setting a 5,000 Australian dollar limit on cash deposits and withdrawals. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has also mandated scam warning signs, enhanced transaction monitoring, and stricter customer due diligence obligations. These measures are part of a broader effort to combat the rising number of scams involving crypto ATMs, which have become increasingly prevalent in recent years.

The new rules are designed to protect individuals from falling victim to scams and to safeguard businesses from criminal exploitation. AUSTRAC CEO Brendan Thomas emphasized that the effectiveness of these conditions will be continuously reviewed and adjusted as necessary. The agency is collaborating with law enforcement and ATM providers to curb suspicious activities and ensure that the sector meets minimum standards to reduce criminal misuse.

The crackdown follows an investigation by an AUSTRAC task force, which examined data from nine crypto ATM providers. The investigation revealed that most users are over 50 years old and account for nearly 72% of all transactions by value. This demographic is particularly vulnerable to scam activities, highlighting the need for stricter regulations to protect them.

There are approximately 150,000 crypto ATM transactions annually in Australia, with about 275 million Australian dollars moving through these machines using cash to buy Bitcoin, Tether, and Ether. The Australian Federal Police (AFP) reported that the country’s online cybercrime reporting system received 150 unique reports of scams involving crypto ATMs between January 2024 and January 2025, with total losses exceeding 3.1 million Australian dollars. The AFP believes that these figures may only represent a fraction of the actual losses.

AFP Commander Graeme Marshall noted that many victims of crypto ATM scams are unaware they have been conned or feel embarrassed to report the incident. He encouraged individuals to share their experiences with family and friends to raise awareness and prevent others from falling victim to similar scams. The adoption of crypto ATMs in Australia has surged, with the country now ranking as the third-largest hub for these machines, behind the US and Canada. The number of crypto ATMs in Australia has grown from 67 in August 2022 to 1,819 currently, driven by the entry of private firms into the market.

Leading crypto ATM providers in Australia include Localcoin, with 753 machines; Coinflip, with 700 ATMs; and Bitcoin Depot, with 182. The rapid growth of crypto ATMs in the region has raised concerns about the potential for criminal exploitation, prompting AUSTRAC to take action to protect consumers and businesses. The new regulations are a significant step towards ensuring that the crypto ATM sector operates within a framework that minimizes the risk of scams and other criminal activities.