AUSTRAC has imposed strict operating conditions on cryptocurrency ATM providers in Australia after a taskforce identified concerning trends in their usage, particularly among older Australians falling victim to scams.
“The taskforce has uncovered disturbing trends which have confirmed that cryptocurrency ATMs are being used for scam/fraud-related transactions,” AUSTRAC chief executive Brendan Thomas said.
Data from nine crypto ATM providers revealed that users over 50 years old accounted for almost 72 per cent of all transactions by value, with the 60 to 70 age group alone representing 29 per cent.
“It is a huge concern that people in this demographic are over-represented as customers using cash to purchase cryptocurrency and, as evidence suggests, that a large number of 60- to 70-year-old users are victims of scam activity,” Mr Thomas said.
New conditions include a $5000 limit on cash deposits and withdrawals, enhanced customer due diligence, mandatory scam warnings and stricter transaction monitoring.
AUSTRAC, a federal financial intelligence agency, has also refused to renew the registration of crypto ATM operator Harro’s Empires.
The number of crypto ATMs in Australia has grown dramatically from 23 in 2019 to more than 1800 active machines in 2024.
About 150,000 transactions occur annually, moving about $275 million, with 99 per cent being cash deposits for cryptocurrencies such as Bitcoin, Tether and Ethereum.
Victims of scams are urged to report incidents to police via ReportCyber and to Scamwatch.
