Australia Introduces New Limits on Crypto ATMs to Tackle Scam Losses

Highlights:

• Australia limits crypto ATM transactions to 5000 AUD to stop scams and protect older users.
• Most crypto ATM scam victims are over 50 and lose thousands through fake investments and fraud.
• Authorities will add warning signs at crypto ATMs to help users spot scams before sending money.

Australia’s financial intelligence agency, AUSTRAC, has introduced new rules for cryptocurrency ATM providers. These rules follow a rise in scam activity linked to these machines. The new measures include a cash limit of 5,000 Australian dollars for both deposits and withdrawals. In addition, ATM providers must now improve how they monitor transactions and verify customer identities. Even though the rules concern ATM operators, AUSTRAC is encouraging crypto exchanges accepting cash to follow the same practices.

Australia tightens regulations on crypto ATMs as authorities warn about increasing scams. Scam losses via crypto ATMs in Australia exceed 3.1 million Australian dollars in 12 months, according to Australian Federal Police. #cryptonews #Australia #cryptoATM#Crypto #Bitcoin #News pic.twitter.com/lisRXVRr34

— FUND THE FUTURE (@ftf_vc) June 3, 2025

Authorities acted after a national task force reviewed ATM usage across the country. This investigation included data from nine ATM operators and showed that people over the age of 50 were the main users. This group accounted for nearly 72% of all transaction value. As a result, AUSTRAC took action in partnership with law enforcement and industry participants.

Brendan Thomas, CEO of AUSTRAC, confirmed that the new conditions aim to limit harm and block scam activity. He stated that these steps will stay under review as AUSTRAC continues to monitor the space. He further shared that the agency is cooperating with the Australian Federal Police (AFP) and ATM operators to modify its strategy as required.

Older Australians Most Affected by ATM-Related Scams

The national cybercrime reporting platform, ReportCyber, reveals that crypto scams are on the increase. There were 150 cases of scams involving crypto ATMs between January last year and January this year. These events led to damage costs exceeding 3.1 million Australian dollars. The figure only includes cases that were formally reported.

Most victims of scammers were older adults over the age of 51. The findings revealed that 102 victims were women and 47 were men. These findings supported the earlier ATM usage data shared by AUSTRAC.

Investment scams made up the largest portion, with 63 cases reported. Another 35 involved extortion and 24 were romance scams. Authorities say many victims do not report these scams because they feel embarrassed or do not realize they have been tricked. Commander Graeme Marshall of the AFP emphasized the need for more public awareness to prevent future incidents.

Crypto ATMs’ Growth Draws Scam Activity

The number of active crypto ATMs in Australia has increased sharply in recent years. The country had just 23 machines in 2019. Currently, there are more than 1,800. Users may use these kiosks to trade digital assets such as Bitcoin, Ether, and Tether in exchange for cash. Around 150,000 purchases and sales are done through cryptocurrency ATMs annually, which is worth about 275 million Australian dollars.

Usually, scammers ask victims to deposit money right away, saying they have to hurry for returns or certain investment deals. As soon as funds are sent using these machines, it is very challenging to recover them. Commander Marshall advised people to seek advice from those they trust and stressed that no real business will ever require payment in cryptocurrency through an ATM.

The AFP and AUSTRAC are working on placing warning signs near ATMs to raise awareness. They will describe scams and show users how to report them. This approach helps protect users who might be easy targets and reduce financial losses.