Australia Limits Crypto ATM Transactions to 5,000 Australian Dollars to Combat Scams

Australia has implemented new regulations for cryptocurrency ATMs, setting a maximum cash transaction limit of 5,000 Australian dollars. This move is part of a broader effort to enhance transaction monitoring, customer due diligence, and scam warning signs. The new rules are designed to protect individuals from falling victim to scams and to safeguard businesses from criminal exploitation.

The crackdown comes after an investigation by an AUSTRAC task force revealed that most users of crypto ATMs are over 50 years old and account for nearly 72% of all transactions by value. The task force, established in September 2024, found that many users in this demographic are victims of scam activity. The Australian Federal Police (AFP) reported that scam losses via crypto ATMs exceeded 3.1 million Australian dollars in a 12-month period, with 150 unique reports of such scams received between January 2024 and January 2025. The AFP warned that this figure may be just the tip of the iceberg, as many victims do not realize they have been scammed or feel embarrassed to report the incidents.

AUSTRAC CEO Brendan Thomas emphasized that the new regulations are not set in stone and will be reviewed and adjusted as needed. The agency is working closely with law enforcement and ATM providers to curb suspicious activity. Thomas stated that the conditions are designed to deter criminals from directing victims to crypto ATMs and to ensure that the sector meets minimum standards to reduce criminal misuse.

The rapid growth of crypto ATMs in Australia has been a concern for authorities. The country has seen an exponential increase in the number of crypto ATMs, from 67 in August 2022 to 1,819 currently, making it the third-largest hub for crypto ATMs globally. Leading providers in the region include Localcoin, Coinflip, and Bitcoin Depot. The new regulations aim to address the risks and harms associated with this growth, ensuring that the sector operates within a framework that protects both consumers and businesses.

The AFP has encouraged individuals to share their experiences with family and friends to raise awareness and prevent others from falling victim to scams. Commander Graeme Marshall highlighted the sophisticated tactics used by scammers and the importance of reporting such incidents to help authorities take action. The new regulations are a significant step towards combating the rising tide of crypto ATM scams and ensuring that the sector operates in a safe and transparent manner.