Australia caps crypto ATM cash transactions at $5K to avoid scamming.
Over $3.1 million lost to crypto ATM fraud in 2024, per AFP.
Older Australians, especially those over 50, are primary scam targets.

Strict rules have been put in place for crypto ATMs in Australia because of a rise in crypto scams. On June 3, 2025, new regulations were put in place by the Australian Transaction Reports and Analysis Centre (AUSTRAC). One of these regulations is a $5,000 cap on cash deposits and withdrawals. These rules are put in place to deal with fraud that is mainly affects older Australians.

New Crypto ATM Regulations

The new rules from AUSTRAC require a maximum cap of $5,000 on cash transactions done through crypto ATMs across the country. Extra customer verification, displaying scam warnings and improved monitoring of transactions are necessary for operators. They try to lower the chance of being victimized by fraud or money laundering.It is recommended by AUSTRAC that cryptocurrency exchanges that deal in cash implement such restrictions voluntarily.

The rules are put in place due to a taskforce report that found severe scamming. During this period, the Australian Federal Police (AFP) found 150 cases linked to scams using crypto ATMs and the amount lost was more than $3.1 million. Some analysts think that there are more cases than those that are officially recognized.

In his words, “These controls help prevent individuals from falling for scams and businesses from being targeted by criminals,” said AUSTRAC CEO Brendan Thomas. It said that the rules will be evaluated and updated depending on how well they work.

Vulnerable Demographics Targeted

People in their 60s and 70s make up a disproportionate share of the victims of crypto ATM scams in Australia.Older people who use crypto make up more than three-quarters of all trading volume, according to AUSTRAC. Many times, scammers claim to be officials or tech staff, trying to convince victims to send money to ATMs.

AFP found that a lot of victims are not sure they were scammed or feel ashamed to report what happened. Using advanced techniques, fraudsters try to fool their victims, according to AFP Commander Graeme Marshall. Authorities encourage sharing experiences to raise awareness.

Australia now has a much higher number of crypto ATMs operating, with 1,819 in June 2025 compared to 67 in August 2022. For this reason, Canada is third in the world behind the US and Canada as a significant hub.Because they are found in convenient places like shops and malls, machines allow rapid trading of cash for crypto which appeals to scammers.

Enforcement and Public Awareness

AUSTRAC has taken decisive action against non-compliant operators. Registrations for Harro’s Empires crypto ATMs were denied by the agency because they still posed risks. Additional punishments could be applied if operators do not meet the requirements for anti-money laundering.

AUSTRAC and the AFP are teaching the public about ATMs by handing out educational information at ATMs. They describe the usual tricks used by scammers such as asking for money on unscheduled calls or creating phony investment plans. The AFP recommends you view any crypto payment request with caution, but especially if it is urgent.

The issue is intensified by the permanent nature of bitcoin transactions. Retrieving funds sent from a crypto ATM presents significant challenges. Since some machines have poor identity verification, fraudsters find them very useful.

With over 150,000 transactions processed yearly, Australian crypto ATMs handle mainly $275 million in cash for BTC and other cryptocurrencies. Though these machines save time, they can be very dangerous if not properly managed.

Global Context and Industry Response

The actions taken by Australia are in line with global work to monitor and control crypto ATMs. Proposed laws in the US seek to limit the amount people can lose and require scam victims to be compensated. Canada has flagged similar machines as money laundering tools. 

The Digital Economy Council of Australia (DECA) recognizes that scams exist, but most users are genuine traders. Paul Derham, DECA chair, explained that because of banking limits, some users turn to crypto ATMs. Industry participants believe it is better to set limits by themselves, since following mandates can be expensive and rules can be broken by users. 

Even so, AUSTRAC continues to try to provide good access while ensuring financial security. It will check all transaction data and can bring in stricter rules if scams keep happening.

The post Australia Limits Crypto ATM Use Amid Rising Scam Cases appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ June 4, 2025 1:22 am