New Regulations in Australia Set Crypto ATM Transaction Cap at AUD 5,000 to Protect Seniors from Scams

The Australian government has implemented new regulations to oversee crypto ATMs, aiming to protect citizens from the financial hazards linked to this technology. The Australian Transaction Reports and Analysis Centre (AUSTRAC) has set a cap of AUD 5,000 (approximately Rs. 2.8 lakh) on both deposits and withdrawals at crypto ATMs. According to the regulator, this measure is expected to help mitigate crypto-related scams and fraudulent activities, particularly those that target older Australians.

Based on information gathered from nine crypto ATM service providers, the government-endorsed financial intelligence unit reported that individuals aged over 50 make up nearly 72 percent of the total transaction value conducted through crypto ATMs. This agency pointed out that older users often buy cryptocurrencies using cash and many are victims of scams and fraudulent schemes.

«Interestingly, those aged between 60 and 70 have been identified as among the most frequent users of crypto ATMs in Australia,» stated Brendan Thomas, CEO of AUSTRAC. «Considering the potential risks involved, it is essential that the industry adheres to minimum standards to prevent criminal exploitation of crypto ATMs.”

From 2019 to 2024, Australia has seen a remarkable increase in the number of crypto ATMs, growing from a mere 23 in 2019 to over 1,200 in 2024. Currently, there are around 1,800 active machines in the country. Data indicates that these crypto ATMs process close to 150,000 transactions each year, resulting in an estimated total of AUD 275 million (about Rs. 1,529 crore) in funds.

«The overwhelming majority of these transactions — roughly 99 percent — are cash deposits for purchasing cryptocurrencies, primarily Bitcoin, Tether, and Ethereum,» the agency disclosed.

Despite the clear rise in the utilization of crypto ATMs, AUSTRAC has noted «alarming» and «concerning» trends regarding the compliance of the companies operating these machines. Recently, the AUSTRAC’s crypto task force denied the renewal of a crypto ATM operator’s registration, called Harros Empires, after uncovering risks of exploitation associated with its operations.

The agency is actively working to enhance awareness of the dangers linked to using crypto ATMs in Australia. This initiative includes placing educational materials near the ATMs to assist users in understanding the associated risks, recognizing fraudulent schemes, and knowing the proper procedures to report suspicious behavior.

«Investing in crypto can be very risky. I would advise anyone asked to use one of these machines to send money to someone to reconsider, as once the funds are gone, it is nearly impossible for authorities to recover them,» Thomas remarked.

In March, the Australian Treasury Department suggested a new legislative framework to oversee the activities and operations of crypto exchanges, custody services, and brokerage firms. Further developments on these regulations are anticipated following feedback from stakeholders in the crypto sector.

Regarding crypto ATMs, these machines have repeatedly been flagged as high-risk, often exploited to facilitate illegal transactions. For example, last year, blockchain intelligence company TRM Labs reported that illicit activities involving crypto ATMs occur at double the rate compared to the overall crypto industry. TRM Labs had released a report at that time stating that unlawful transactions valued at $160 million (approximately Rs. 1,342 crore) were conducted through crypto ATMs between 2019 and 2024.

Financial authorities in the UK had previously cracked down on crypto ATM service providers in 2023 for operating machines without meeting all legal obligations.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)