Australia’s financial intelligence agency has issued a direct warning to cryptocurrency ATM operators, citing rising concerns over scam-linked transactions and money laundering. The Australian Transaction Reports and Analysis Centre (AUSTRAC) announced Monday that it has placed the sector “on notice” following the findings of a dedicated crypto taskforce.
AUSTRAC CEO Brendan Thomas said the internal taskforce, launched in December, had uncovered “worrying trends and indicators of suspicious activity,” including transactions potentially tied to fraud.
“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,”
Rapid Expansion Fuels Regulatory Pressure
Australia leads the Asia-Pacific region in the number of cryptocurrency ATMs, also known as crypto kiosks. According to Coin ATM Radar, the count has surged from 23 in 2019 to more than 1,648 today. Sydney alone hosts 348 machines. Most transactions involve cash deposits to purchase Bitcoin.
AUSTRAC noted that the swift rise in crypto kiosk installations, largely driven by digital currency exchanges, has outpaced the implementation of adequate compliance frameworks. The task force’s investigations revealed that some operators may be failing to meet obligations under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act.
Under the law, all digital currency exchanges (DCEs), including crypto ATM providers, must register with AUSTRAC, conduct Know Your Customer (KYC) checks, monitor transactions, and report suspicious activities. They are also required to file reports for any cash transaction exceeding $10,000.
Thomas stated that AUSTRAC is working with businesses to raise standards but warned of enforcement action for non-compliance. “We will continue to work with industry… but we will also take action against operators who don’t comply,” he said.
Global Scrutiny Intensifies
The Australian crackdown follows similar moves in the United States, where lawmakers have begun targeting crypto ATM operators as fraud cases escalate. In March, Senator Dick Durbin of Illinois introduced the Crypto ATM Fraud Prevention Act, proposing daily transaction caps and mandatory refunds for victims who report scams within 30 days.
Nebraska has already passed the Controllable Electronic Record Fraud Prevention Act, mandating visible fraud warnings and extending refund rights for reported scams up to 90 days. Both legislative efforts are responses to a growing number of cases involving elderly victims.
AUSTRAC’s crypto taskforce, comprising regulatory, enforcement, and intelligence experts, began with a focus on crypto kiosks but has since broadened its mandate to assess industry-wide compliance gaps.
