Australia warns crypto ATM operators over laundering risks

Australia’s financial regulator has issued a formal warning to crypto ATM operators, citing concerns that many machines enable money laundering and fraud.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) stated its crypto taskforce identified “worrying trends” linked to scams and illicit activity through these kiosks.

Crypto ATMs, which allow users to buy or sell cryptocurrencies like Bitcoin using cash or cards, have proliferated in Australia, with over 1,648 machines now operational—the highest count in the Asia-Pacific region.

“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” emphasised AUSTRAC CEO Brendan Thomas, highlighting the need for stricter compliance.

Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act, crypto ATM operators must register with AUSTRAC, conduct identity checks, monitor transactions, and report suspicious activity.

Despite these requirements, enforcement challenges persist, particularly as fraud cases involving elderly victims rise globally.

Recent arrests in Melbourne highlight the issue’s severity: police dismantled a gang targeting crypto ATMs and trading card stores, seizing $50,000 AUD in stolen items.

AUSTRAC’s taskforce, formed in December 2024, has expanded its focus beyond ATMs to address broader industry compliance gaps.

The regulatory push mirrors international efforts. In the U.S., Illinois Senator Dick Durbin proposed the Crypto ATM Fraud Prevention Act, which would cap daily transaction limits and mandate refunds for scam victims.

Nebraska passed similar legislation requiring fraud warnings and refund rights.

While crypto ATMs offer convenience, their anonymity has made them vulnerable to exploitation.