Australia’s financial intelligence agency AUSTRAC has introduced new restrictions on crypto ATM operators and refused to renew the registration of one crypto ATM provider, Harro’s Empires, citing ongoing risks of criminal exploitation.
This follows a taskforce review that identified increasing misuse of the machines in scam and fraud-related activity, particularly among older Australians.
The taskforce, which reviewed data from nine crypto ATM operators, found that users aged 50 and above were behind nearly 72% of transactions by value, with those aged 60 to 70 alone accounting for 29%.
AUSTRAC said the findings were particularly concerning, noting that people in this age group appeared to be frequent scam victims and were overrepresented in cash-for-crypto transactions.
In response, AUSTRAC has imposed new conditions on operators, including a AU$5,000 limit on cash deposits and withdrawals, stricter customer verification processes, and mandatory scam warnings at machines.
These measures are also aimed at protecting businesses from being exploited by criminal activity.
The agency said this action should serve as a warning to other digital currency exchanges that fail to comply with Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) obligations.
While the AU$5,000 cash limit applies specifically to crypto ATMs, AUSTRAC noted it expects other digital currency exchanges accepting cash to consider similar restrictions to reduce exposure to money laundering, terrorism financing and other serious crime risks.
The Joint Policing Cybercrime Coordination Centre (JPC3), led by the Australian Federal Police, has rolled out educational materials near crypto ATMs to raise public awareness about scams and offer guidance on how to report suspicious activity.
Australia has seen rapid growth in the number of crypto ATMs, rising from 23 in 2019 to over 1,800 by 2024.
AUSTRAC estimates nearly 150,000 transactions occur annually through these machines, moving around AU$275 million—with about 99% of those transactions involving cash deposits for cryptocurrencies such as Bitcoin, Tether, and Ethereum.
AUSTRAC CEO Brendan Thomas urged the public to remain cautious when using crypto ATMs, especially if prompted by unknown parties.
He warned that once funds are transferred through such channels, recovery is nearly impossible.
The agency said it will continue to monitor the sector and adjust regulatory measures as needed.
Featured image: Edited by Fintech News Singapore, based on image by noob via Freepik
