Australia Takes Aim at Crypto ATM Crimes as AUSTRAC Cracks Down

AUSTRAC Launches Dedicated Taskforce to Target Crypto ATM Financial Crimes

Australia's financial intelligence agency, AUSTRAC, has officially established a specialised internal taskforce to address concerns related to cryptocurrency ATMs (CATMs) and their use in financial crimes.

This new initiative will specifically focus on money laundering, fraud, and other financial crimes connected to crypto kiosks operating across the country.

A Rising Threat from Crypto ATMs

Crypto ATMs, also known as CATMs, are becoming a common feature in Australian cities.

These machines allow users to purchase cryptocurrencies like Bitcoin and Dogecoin using cash, credit or debit cards, or digital wallets.

Despite their convenience, the machines have been increasingly exploited by criminal networks to launder illicit funds.

According to a report by Finance Magnates, Bitcoin ATM scams hit $110 million in 2023, marking a tenfold increase since 2020.

Criminals typically deposit money into these kiosks multiple times and exchange it for untraceable cryptocurrencies, leaving little chance of recovery.

According to estimates from Coin ATM Radar, there are 1,302 CATMs operating in Australia.

This figure places Australia as the third-highest nation in terms of crypto ATM presence globally, following the United States and Canada.

While 400 registered digital currency exchange providers (DCEs) are officially listed with AUSTRAC, only a few of these are tied to CATMs.

AUSTRAC to Increase Oversight of Crypto ATM Operators

Brendan Thomas, AUSTRAC’s CEO, warned that strict action will be taken against non-compliant operators.

“Cryptocurrency ATM providers need to ensure they are complying with their money laundering obligations and are reducing the risks of crime. If they’re ignoring those obligations they risk being subject to significant financial penalties and AUSTRAC won’t hesitate in taking action,” he stated.

Thomas highlighted that this effort marks the beginning of AUSTRAC’s intensified focus on cryptocurrency crimes for the year ahead.

“This is the first step in AUSTRAC’s focus to reduce the criminal use of cryptocurrency in Australia. We will be focusing on this industry over the course of next year,” he added.

The Broader Financial Crime Picture with CATMs

The statistics are telling.

Blockchain intelligence firm TRM reported that crypto ATMs have facilitated over US$160 million (AU$248.3 million) in illicit transactions globally since 2019.

Furthermore, last year’s illicit activity involving cash-to-crypto transactions accounted for 1.2% of total cash-to-crypto transactions, a figure twice that of the overall crypto market.

These trends raise concerns about the role of crypto kiosks as a gateway for scams and fraud.

According to Thomas, the risk is magnified because “cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and facilitate near-instant and irreversible transfers.”

AUSTRAC’s statement also highlights the human toll.

“We’re seeing too many Australians falling victim to scams carried out through cryptocurrency, and we’ve heard of some victims losing their life savings, which is just heartbreaking,” he said.

This statement reveals how crypto-related scams continue to harm unsuspecting individuals.

Compliance Requirements in the Spotlight

Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws, all digital currency exchange providers must meet strict obligations.

This includes transaction monitoring, conducting know-your-customer (KYC) checks, reporting suspicious financial activity, and submitting threshold transaction reports for deposits or withdrawals of AU$10,000 or more.

AUSTRAC has reiterated that all crypto ATM operators are required to adhere to these standards, ensuring the risk of scams and illicit activity is mitigated.

These expectations are not just regulatory red tape; they are necessary safeguards given the increasing reports of cryptocurrency scams targeting Australian residents.

Global Comparison and Heightened Risks

Australia is not alone in addressing these concerns.

Similar challenges have arisen in other countries, with Germany’s BaFin recently cracking down on illegal CATMs and seizing €25 million in cash, while the UK’s Financial Conduct Authority closed 26 illegal crypto ATMs in 2023.

Despite these crackdowns, the crypto ATM sector is expected to continue its upward growth.

Scott Buchanan, COO of Bitcoin Depot, recently projected that the global crypto ATM market was valued at $182.1 million in 2023 and is expected to grow at a rate of 63.4% annually until 2030.

Over 2,500 new machines are expected to come online in 2024 alone, signalling the sector's rapid expansion despite regulatory concerns.

AUSTRAC’s Next Steps for 2025

Brendan Thomas has confirmed that cryptocurrency will remain a key priority for AUSTRAC in 2025.

The new taskforce will closely monitor high-risk operations within the crypto ATM network and ensure operators align with AML/CTF laws.

Given the risks posed by crypto ATMs, AUSTRAC has made it clear that it will ramp up investigations and inspections.