Australia’s financial crimes watchdog has placed crypto ATM operators “on notice,” warning many such machines may be helping criminals launder money or defraud victims.
The Australian Transaction Reports and Analysis Centre (AUSTRAC) said its crypto taskforce, formed last December, uncovered "worrying trends and indicators of suspicious activity" tied to crypto ATMs, including links to scams and fraud, in a statement released Monday.
Crypto ATMs—also known as kiosks—are physical machines that allow users to buy or sell cryptos like Bitcoin using cash or cards, often without the same identity checks used in traditional finance.
Australian Police Bust Gang Targeting Crypto ATMs, Trading Cards
Police in Australia have dismantled an organized crime syndicate accused of stealing from six crypto ATMs and raiding collectible card stores across Melbourne's northwest, seizing approximately 50,000 AUD ($31,800) in trading cards and multiple firearms. In a Monday notice, Victoria Police’s North West Metro Regional Crime Squad said it had arrested four people over the last week, uncovering what they called an "Aladdin's cave" of stolen items including Pokémon, Disney Lorcana, Yu-Gi-Oh, Magic t...
"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,” said AUSTRAC CEO Brendan Thomas.
AUSTRAC’s taskforce—made up of regulatory, enforcement, and intelligence specialists—initially focused on crypto ATMs but has since expanded its scope to address industry-wide compliance issues.
Under Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act, all DCEs—including those operating crypto ATMs—must register with AUSTRAC, perform KYC checks, monitor transactions, and file Suspicious Matter Reports as well as reports for cash transactions over $10,000.
Australia now hosts over 1,648 crypto ATMs—the highest count in the Asia-Pacific region—up from just 23 in 2019, with Sydney alone accounting for 348, Coin ATM Radar shows.
Illinois Senator Proposes Bill to Regulate Crypto ATMs Nationwide
Crypto ATMs, once touted as a convenience for enthusiasts, are now being exploited by scammers, leaving victims, many of them elderly, with substantial financial losses. In response, Illinois Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, seeking to impose new regulations to curb the rising tide of fraud associated with these machines. The legislation, announced Tuesday, would place strict transaction limits on crypto ATMs and require companies to offer full refunds to...
AUSTRAC's warning comes as U.S. lawmakers race to tighten guardrails around crypto kiosks as fraud cases surge, many involving elderly victims.
Illinois Senator Dick Durbin last month introduced the Crypto ATM Fraud Prevention Act, seeking to cap daily transaction limits at the crypto ATMs and require mandatory refunds for scam victims who report fraud within 30 days.
Nebraska, meanwhile, has passed the Controllable Electronic Record Fraud Prevention Act, mandating fraud warnings and refund rights for users who report the fraud within 90 days.
Edited by Sebastian Sinclair
