The Australian Transaction Reports and Analysis Centre (AUSTRAC) has introduced new operating conditions and a $5,000 AUD cash transaction cap for cryptocurrency ATM providers across Australia. These measures aim to reduce scams and enhance anti-money laundering (AML) compliance.
Operators must now impose a deposit and withdrawal limit of approximately $3,250 USD per transaction and display scam warnings at ATMs to alert users about fraud risks. Furthermore, providers are required to conduct more rigorous customer due diligence and strengthen transaction monitoring for suspicious activity.
AUSTRAC’s decision follows an investigation by a taskforce analyzing data from nine providers, revealing that individuals over 50 years old accounted for nearly 72% of transaction value, with those aged 60 to 70 alone representing 29%. This demographic has been heavily targeted by fraudsters exploiting crypto ATMs.
One operator, Harro's Empires, had its registration renewal refused by AUSTRAC due to persistent misuse risks, setting a precedent for similar enforcement actions against non-compliant providers. The regulator also urged all digital currency exchanges accepting cash to consider adopting similar transaction caps to mitigate financial crime risks.
The new compliance framework is supplemented with educational materials placed near ATMs, created in partnership with the Australian Federal Police-led Joint Policing Cybercrime Coordination Centre (JPC3), aimed at informing users about scam tactics, warning signs, and reporting mechanisms.
AUSTRAC warns that failure to comply with AML and counter-terrorism financing (CTF) laws will result in legal remedies. This comes amid sharp growth in Australia’s crypto ATM network, from just 23 machines in 2019 to over 1,800 today, processing approximately 150,000 transactions annually worth an estimated $275 million in cash, predominantly for Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
The Australian Federal Police reported more than 150 scam-related cases linked to crypto ATMs between January 2024 and January 2025, with losses exceeding 3.1 million AUD. Authorities believe this figure underrepresents the true scale, as many victims are unaware or reluctant to report scams.
This regulatory move signals a tightening grip on the crypto ATM sector to protect vulnerable populations and uphold legal standards amid rising fraud incidents in Australia.