Australia’s financial watchdog has rolled out strict new rules targeting crypto ATM operations after a sharp rise in scams—particularly those affecting older citizens. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has imposed a AU$5,000 (approximately $3,250 USD) cap on both cash deposits and withdrawals at crypto ATMs. The new rules are part of a broader anti-fraud package aimed at limiting criminal abuse of these machines.
The move follows findings by the Australian Federal Police (AFP), which revealed that scams involving crypto ATMs resulted in AU$3.1 million ($2 million USD) in reported losses over a 12-month period. Officials warn that the actual number may be significantly higher, as many victims—particularly older individuals—either don’t report the crimes or are unaware they’ve been defrauded.
Under AUSTRAC’s updated mandate, ATM operators must now display prominent scam warning messages, conduct enhanced customer due diligence, and implement improved transaction monitoring. While the rules currently apply only to crypto ATMs, AUSTRAC is encouraging all crypto platforms that accept cash to adopt similar safeguards.
AUSTRAC CEO Brendan Thomas emphasized that the new measures are essential for protecting the public and preventing criminal exploitation:
“In light of the risks and harms, we consider it absolutely necessary to ensure the sector meets minimum standards and reduces the criminal misuse of crypto ATMs.”
Crypto Scams Hit Older Australians Hardest
AUSTRAC’s crackdown stems from a year-long task force investigation that uncovered an alarming demographic trend: Australians over the age of 50 account for nearly 72% of all crypto ATM transaction volume nationwide. Launched in September 2023, the task force set out to evaluate whether existing anti-money laundering and counter-terrorism protocols were being properly enforced.
According to AUSTRAC’s findings, crypto ATMs processed over 150,000 transactions totaling approximately AU$275 million annually, with the majority involving cash purchases of Bitcoin, Tether, and Ethereum. A disproportionate number of users fell into the 60–70 age bracket, a group increasingly targeted by scams.
“It is a huge concern that people in this demographic are overrepresented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60–70 year old users are victims of scam activity,” said Thomas.
The investigation’s findings directly shaped AUSTRAC’s new policy, which includes mandatory scam alerts on ATM screens and hard caps on transactions. Regulators say these changes are designed not only to improve compliance but to protect vulnerable users in an increasingly complex financial environment.
Police Say Scam Losses Are Vastly Underreported
The Australian Federal Police are warning that the true scope of crypto ATM-related scams may be much worse than reported. Between January 2024 and January 2025, the country’s cybercrime portal received 150 official reports totaling AU$3.1 million in losses. But investigators believe these numbers understate the problem.
AFP Commander Graeme Marshall explained that many victims are too embarrassed to report the scams, while others don’t even realize they’ve lost money to fraud.
The rise in scams comes amid a massive expansion of crypto ATMs in Australia, now the world’s third-largest market for such machines. The number of ATMs surged from just 67 in August 2022 to 1,819 by 2025, led by providers like Localcoin, CoinFlip, and Bitcoin Depot.
While these machines offer fast, cash-to-crypto transactions, they also present risks due to minimal on-site oversight and limited user education.
Authorities are calling for greater public awareness, tighter regulatory frameworks, and more collaborative prevention strategies to reduce fraud and protect Australia’s growing number of digital asset users—especially seniors and first-time crypto adopters.
Quick Facts
- Australia has capped crypto ATM transactions at AU$5,000 for both deposits and withdrawals.
- Older Australians (50+) account for 72% of crypto ATM volume.
- Over AU$3.1 million in crypto ATM scam losses were reported in one year, with many cases likely unreported.
- Australia now has 1,819 active crypto ATMs, making it the third-largest market globally.
- AUSTRAC mandates scam warnings, enhanced due diligence, and improved monitoring systems for ATM operators.
