Australia is stepping up action against cryptocurrency ATMs after a sharp rise in scams and other illicit uses, according to AUSTRAC and law enforcement reports. Machines that let people turn cash into crypto have grown fast, and regulators say the surge has put older and vulnerable users at particular risk. Regulators Tighten Rules Authorities have introduced a set of new controls aimed at cutting abuse. Based on reports, a cash cap of AUD5,000 per transaction is now in place for many ATMs. Operators are being told to strengthen identity checks, add clear scam warnings on the machines, and file more reports when activity looks suspicious. AUSTRAC has set up a task force to inspect providers and press compliance where it is missing. Scams Hit Older People Hard The harm is already real. Reports have disclosed that around 150,000 transactions flow through crypto ATMs each year, moving roughly AUD275 million in total. About 99% of those are cash deposits. In Tasmania, police say 15 people lost a combined AUD2.5 million in recent schemes and one person lost about AUD750,000; the average age of victims in that case was about 65. Many of the cases involve callers who pressure or trick victims into sending cash to a machine and then transferring the funds overseas. Enforcement And Gaps Police and AUSTRAC have been refusing renewals for noncompliant operators and running targeted investigations. Still, enforcement faces limits. The number of machines has ballooned — estimates put them at roughly 1,600–1,800+ across the country — and some providers were found not to be doing proper identity checks or transaction monitoring. That makes it hard to police every kiosk, and it leaves room for criminals to move quickly. Risks For Victims And The System Once cash is converted and moved on-chain, it is often hard to reverse. Funds can be mixed, sent through multiple wallets or routed abroad. That makes recovery difficult, especially when recipient addresses tie into overseas services that do not cooperate with Australian authorities. Regulators warn that while ATMs have legitimate uses — for people who prefer cash or lack access to online services — the machines’ anonymity and instant transfers create a high abuse risk. Featured image from Unsplash, chart from TradingView
