Australia Intensifies Crypto ATM Regulations After $3.1M Scam Losses, 72% Targeting Seniors

Australia has intensified regulatory oversight of cryptocurrency ATMs following a surge in scams that led to over $3.1 million in reported losses. The country’s financial intelligence agency, AUSTRAC, introduced stricter rules on June 3, including a $5,000 daily limit on cash deposits and withdrawals at crypto ATMs, mandatory customer verification processes, and enhanced transaction monitoring. Operators are also required to display scam warnings at all kiosks to protect users from fraudulent schemes.

The crackdown responds to a sharp rise in crypto ATM-related fraud, with 150 reported cases between January 2024 and January 2025. Federal authorities highlighted that individuals over 50 accounted for 72% of all losses, underscoring their vulnerability to sophisticated scams. Scammers often exploit this demographic by posing as legitimate operators, using deceptive websites or messages to trick victims into transferring funds to fraudulent accounts. Many cases remain unreported due to victims’ reluctance to admit being scammed, according to AFP Commander Graeme Marshall.

AUSTRAC’s measures aim to address the anonymity risks inherent in crypto ATM transactions, which lack the anti-fraud safeguards common in traditional banking systems. The agency warned that unregulated machines could be exploited for money laundering or terrorism financing. The regulatory push follows a dramatic expansion of crypto ATMs in Australia, which grew from 67 in August 2022 to 1,819 by early 2025, making the country the third-largest global market for such devices. This surge has outpaced compliance frameworks, prompting AUSTRAC to prioritize oversight to mitigate financial crime risks.

The new rules require operators to verify users’ identities and monitor transactions in real time, while also mandating visible warnings about scams at ATM locations. AUSTRAC emphasized that the goal is to balance innovation with accountability, ensuring crypto ATMs do not become tools for illicit activities. The regulator’s actions align with global efforts to curb fraud in decentralized financial systems, as criminals increasingly target emerging technologies. Former AUSTRAC CEO Nicole Rose noted that without proper regulation, crypto ATMs could undermine efforts to combat financial crime.

Analysts stress that the $3.1 million loss represents only a fraction of the true scale of fraud, as many victims remain unaware or unwilling to report incidents. The lack of standardized reporting mechanisms and the anonymity of transactions further complicates tracking and recovery. While no nationwide ban on crypto ATMs has been imposed, regulators are urging consumers to verify machine operators and transaction details before engaging with such services.

The regulatory focus on crypto ATMs reflects broader concerns about the risks posed by decentralized financial tools. As adoption grows, authorities are under pressure to enforce compliance without stifling innovation. The Australian measures set a precedent for other jurisdictions grappling with balancing access to digital assets with the need to protect users from exploitation. The outcome will hinge on whether stricter oversight can reduce fraud while maintaining public trust in the crypto ecosystem.