Australia has introduced new rules to regulate crypto ATMs in order to safeguard citizens from financial risks associated with the technology. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has now enforced a deposit and withdrawal limit of AUD 5,000 (roughly Rs. 2.8 lakh) on crypto ATM transactions. The Australian regulator believes that this strategy could curb crypto scams and frauds, especially those targeting elderly individuals in the country.
Citing details collected from nine crypto ATM service providers, the government-backed financial intelligence agency said that the use of crypto ATMs is dominated by individuals over the age of 50, who account for nearly 72 percent of the total transaction value. The agency highlighted that elderly individuals are purchasing cryptocurrencies via cash, with many falling prey to scams and fraudulent schemes.
«Surprisingly, the 60 to 70 age group were identified as the one of the most prolific users of crypto ATMs in Australia,» said Brendan Thomas, the CEO of AUSTRAC. «In light of the risks and harms we consider it is absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”
Between 2019 and 2024, Australia witnessed a notable surge in crypto ATM installations, rising from just 23 in 2019 to over 1,200 in 2024. At present, Australia houses an estimate of 1,800 active machines. Data also shows that nearly 150,000 transactions are processed via these crypto ATMs annually, accounting for funds around AUD 275 million (roughly Rs. 1,529 crore).
«The vast majority of those transactions – about 99 percent – are cash deposits for the purchase of cryptocurrencies, mostly Bitcoin, Tether, and Ethereum,» the agency revealed.
Despite the evident rise in the use of the crypto ATMs, AUSTRAC claims to have observed «worrying» and «disturbing» trends in the compliance statuses of firms behind these crypto ATMs. The crypto task force within the AUSTRAC recently refused to renew the registration of a crypto ATM operator called Harros Empires after identifying exploitation risks related to the company’s operations.
The agency is now taking active measures to spread awareness around the risks associated with using crypto ATMs within Australia. To do this, educational materials are being placed alongside the ATMs that will help readers understand the risks involved, identify fraudulent schemes, and understand the rights ways to report any suspicious activity.
«Crypto can be a high risk investment. I would warn anybody who is asked to use one of these machines to send funds to someone to stop and think twice, as once your money is gone it is almost impossible for authorities to retrieve it,» Thomas added.
In March, the Australian Treasury Department proposed a legislative framework to monitor the businesses and operations of crypto exchanges, custody services, and brokerage firms. More development on these regulations is expected to happen once the proposed laws have received feedback from the stakeholders of the crypto sector.
As far as crypto ATMs are concerned, these machines have time and again been flagged as high risk means bring exploited to facilitate illicit transactions. Last year, for instance, blockchain intelligence firm TRM Labs had said that the rate of illicit activities involving crypto ATMs is double that of the broader crypto ecosystem. TRM Labs had released a report at the time, that claimed that unlawful transactions worth $160 million (roughly Rs. 1,342 crore) were processed via crypto ATMs between 2019 and 2024.
Financial authorities in the UK previously cracked down on crypto ATM service providers in 2023, for installing machines without clearing all legal requirements.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
