Australia Launches Task Force to Crackdown on Crypto ATMs

Key Takeaways

•  As per AUSTRAC, digital currencies and crypto ATMs are increasingly being exploited for money laundering and scams
• Australia is the third-largest market globally for crypto ATMs.

Australia’s financial intelligence agency, AUSTRAC, has established a dedicated task force to address compliance issues in the country’s cryptocurrency ATM sector. 

The initiative aims to mitigate risks of money laundering and scams associated with digital assets, with AUSTRAC’s CEO Brendan Thomas emphasizing that crypto regulation will remain a primary focus in 2025.

“Our aim is to strike a balance between reducing the misuse of cryptocurrencies and supporting legitimate operators,” Thomas said.

The task force’s creation comes amid growing concerns over the misuse of crypto for illicit activities. According to AUSTRAC, digital currencies and crypto ATMs are increasingly being exploited for money laundering, scams, and money mule operations. 

Currently, Australia has around 1,200 crypto ATMs, making it the third-largest market globally. However, only a small percentage of the 400 registered digital currency exchange providers operate these machines, highlighting gaps in compliance.

 Under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) laws, operators are required to conduct know-your-customer (KYC) checks, monitor transactions, report suspicious activities, and file threshold reports for transactions crossing AUD 10,000.

Brendan Thomas underscored the importance of these measures, noting the severe financial and emotional toll on scam victims. “We’re seeing too many Australians fall victim to scams conducted through cryptocurrency, with some losing their life savings. Strengthening oversight of this sector is essential,” he stated.

The task force’s responsibilities will include identifying non-compliant crypto ATM operators, enforcing regulatory standards, and implementing penalties for violations. AUSTRAC has also encouraged the public to report suspected scams through platforms like Scamwatch and ReportCyber to assist in safeguarding the market.

This effort aligns with global trends, as several countries increase scrutiny of crypto ATMs. Earlier this year, Germany’s financial regulator confiscated illegal crypto ATMs and seized approximately €250,000 in cash. Similarly, the United Kingdom has declared all unregistered crypto ATMs illegal, shutting down 26 Bitcoin ATMs in 2022 and filing charges against individuals operating without proper authorization.

Despite regulatory challenges, the crypto ATM sector continues to expand, driven by the growing adoption of digital currencies. Industry reports indicate a rise in the number of installed machines worldwide. However, the growth has also been accompanied by a significant increase in scams, with Bitcoin ATM-related fraud surpassing US$110 million in 2023—a tenfold increase since 2020.