By PAUL O’DONOGHUE, Senior Correspondent
AUSTRAC has imposed a $5,000 AUD ($3,200 USD) limit on cash deposits and withdrawals at Australian crypto ATMs.
The new cap applies specifically to crypto ATM providers. Although the rule does not extend to all digital currency exchanges, AUSTRAC said it “expects digital currency exchange providers to consider imposing similar limits, if they accept cash for crypto transactions.”
The regulator also introduced several new anti-money laundering (AML) measures for crypto ATM operators. These include mandatory scam warnings, enhanced customer due diligence, and stronger transaction monitoring systems.
“The conditions are designed to help protect individuals from scams,” said AUSTRAC CEO Brendan Thomas in a statement. He also said that the new rules aim to stop criminals from using crypto ATMs to exploit victims and businesses.
Concerns of scams at Australian crypto ATMs
The changes follow a taskforce investigation that flagged “worrying trends in crypto ATM compliance.” AUSTRAC said it observed transactions showing signs of scams, fraud, and other illegal activity.
Mr Thomas also described the findings as “disturbing,” confirming that scammers are using crypto ATMs for fraud-related transactions.
Crypto ATMs have grown rapidly across Australia. In 2019, there were only 23 machines. That number rose to 60 in 2022 and now exceeds 1,800 nationwide.
AUSTRAC estimates that crypto ATMs process nearly 150,000 transactions each year, moving around $275 million AUD. It also said about 99% of those involve cash deposits used to buy cryptocurrencies, mainly Bitcoin, Tether, and Ethereum.
Mr Thomas warned: “I would warn anybody who is asked to use one of these machines to send funds to someone to stop and think twice. Once your money is gone, it is almost impossible for authorities to retrieve it.”
The move comes after AUSTRAC issued a warning in April. It said crypto ATMs were enabling scams, and threatened a crackdown.
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