Security

Australia to crack down on crypto ATM money laundering, scams

Australia's top financial crimes regulator AUSTRAC may soon have power to heavily regulate bitcoin ATMs, amid growing fraud concerns.

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October 17, 2025 by Bradley Cooper — Editor, ATM Marketplace & Food Truck Operator

Australia will soon be cracking down on cryptocurrency ATMs. Tony Burke, minister for Home Affairs, will enable the Australia's anti-money laundering, counter-terrorism financial regulator and financial intelligence unit AUSTRAC to "restrict or prohibit certain high-risk products, service or delivery channels," a press release states.

Burke has introduced a law to give AUSTRAC these powers, which AUSTRAC CEO Brendan Thomas said he will use immediately.

"Having a power like this enables the CEO to adapt to the evolving risk environment in more responsive ways," Thomas said in the release.

Thomas pointed to the rising number of bitcoin ATMs as a concern, due to the vast amounts of scams that come through the devices.

"When we established the Crypto Taskforce at the end of last year there were 1,200. That number has now risen to 2,000," he said. When AUSTRAC examined bitcoin ATMs, it found that there were around 150,000 transactions annually to the tune of $275 million. In addition, in a sample of the 90 most prolific crypto ATM users, 85% were found to be scam victims, and people aged 50-70 make up almost 72% of crypto ATM transactions.

This is reflected in individual providences of Australia as well. Tasmania found that the all of the top 15 cryptocurrency ATM users in the providence were scam victims.

Thomas added that crypto ATMs can be used for money laundering as well, due to the cash intensive nature of such transactions.

"Crypto transactions are becoming integrated into money laundering methodologies and crypto ATMs present even more risks due to the ability to turn cash into digital currency that can be sent instantly and virtually anonymously across the globe," Thomas said.

One major question is whether Australia will follow in New Zealand's footsteps, which banned crypto ATMs earlier this year. However, Burke has not answered that question, saying that making a declaration would cause a "legal challenge," according to a report by Decrypt.

"I don't believe crypto ATMs represent a significant risk in comparison to other established channels such as banks, casinos, or remittance services (particularly as most crypto ATMs already require some level of KYC verification)," James Volpe, founding director of uCubed, said in the report.

He said that despite this, AUSTRAC is aimed at "targeting criminal misuse rather than stifling innovation."

This move by Australia reflects a growing concern across many countries and states over the rising tide of bitcoin ATM scams. In America, the FBI found that there were more than $240 million in losses from bitcoin ATM scams in 2024 alone, with the numbers likely being much higher due to underreporting.

In response,Illinois Gov. JB Pritzker signed a law that regulates crypto ATMs, requiring scam warning signs and refunds for victims.Lincoln, Nebraska is also considering an ordinance to require ATM operators to put up signs next to the ATMs. Washington D.C. AG Brian L. Schwalb filed alawsuit against Athena Bitcoin for allegedly financially benefitting from scams and failing to disclose fee terms.

Some in the crypto ATM industry are taking measures to prevent scams, such as Bitcoin Depot, the largest operator worldwide with more than 8,500 ATMs. It recently introduced ID verification requirements at ATMs and is adding scam protection features to detect fraud in real time.

About Bradley Cooper

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Bradley Cooper is the editor of ATM Marketplace and Food Truck Operator. He was previously the editor of Digital Signage Today. His background is in information technology, advertising, and writing.

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