Australia overhauls crypto ATM rules to combat rising scams

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Australia overhauls crypto ATM rules to combat rising scams Crypto ATMs, such as this one pictured in a Sydney shopping center, have also cropped up in petrol stations, convenience stores and some food shops. Source: Coin ATM Radar

Australia’s national financial intelligence agency has rolled out new operating rules and transaction limits for crypto ATM operators, as federal police say scams through the kiosks are on the rise.

The Australian Transaction Reports and Analysis Centre (AUSTRAC) is enforcing a 5,000 Australian dollar ($3,250) limit on cash deposits and withdrawals on crypto ATMs, scam warning signs, more robust transaction monitoring and enhanced customer due diligence obligations, the agency said in a June 3 press release shared with Cointelegraph.

Currently, the limits only apply to crypto ATM providers; however, AUSTRAC expects crypto exchanges operating in Australia to “consider imposing similar limits if they accept cash for crypto transactions.”

AUSTRAC CEO Brendan Thomas said the new rules are not set in stone, and the “effectiveness of these conditions” will remain under review and be adjusted if needed while the agency works with law enforcement and ATM providers to curb any suspicious activity.

“The conditions are designed to help protect individuals from scams by deterring criminals from directing them to a crypto ATM, as well as to protect businesses from criminal exploitation,” he said.

“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.”

The crackdown was triggered after an investigation by an AUSTRAC task force examined data from nine crypto ATM providers and found that most users are over 50 years of age and account for almost 72% of all transactions by value.

Cryptocurrencies, ATM, Australia, Scams, Money Laundering
Crypto ATMs, such as this one pictured in a Sydney shopping center, have also cropped up in petrol stations, convenience stores and some food shops. Source: Coin ATM Radar

The task force was set up last September to investigate whether crypto ATMs had the proper Anti-Money Laundering and counter-terrorism checks in place. 

“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,” Thomas said.