Australia’s financial crimes watchdog, Austrac, has imposed new restrictions on cryptocurrency ATMs as the growing number of kiosks draws increased misuse by scammers and fraudsters.
Under the new rules, cash deposits and withdrawals at crypto ATMs are now capped at A$5,000 (US$3,250) to better protect consumers.
Austrac also announced it has refused to renew the registration of one crypto ATM operator, signaling a tougher stance on compliance within the sector.
“A large number of 60–70-year-old users are victims of scam activity, AUSTRAC CEO Brendan Thomas said in the statement. “It’s a huge concern.”
The announcement follows a March warning by Austrac, which placed the crypto ATM sector “on notice” after a taskforce established in late 2023 uncovered significant compliance gaps.
New data from nine operators reveals that individuals over 50 account for nearly 72% of total transaction value, with those aged 60 to 70 making up 29%—highlighting the vulnerability of older Australians to crypto-related scams.
“AUSTRAC’s recent move, coupled with Singapore’s MAS’ licensing deadline, are particularly alarming given APAC’s established position as a crypto hub,” Altan Tutar, CEO and Co-Founder of MoreMarkets, told Decrypt. “The region has long attracted Web3 projects through balanced regulation that pushed innovation while maintaining oversight. This competitive advantage now appears at risk.”
Austrac’s latest move targets a sector that has experienced rapid, largely unregulated growth. According to Coin ATM Radar, the number of crypto ATMs in Australia has surged from just 23 in 2019 to over 1,800 today.
Officials estimate that these machines facilitate around $275 million in transactions annually, with the vast majority involving cash-based purchases of cryptocurrencies—mainly Bitcoin, Ethereum, and Tether.
“Operators must respect the law of the land,” Sudhakar Lakshmanaraja, founder of the blockchain education platform Digital South Trust, told Decrypt. “Compliance not only protects citizens but also reduces exposure to high-risk activities.
The regulator is also partnering with law enforcement to install educational materials near crypto ATMs, aiming to warn and deter potential scam victims before transactions are completed.
